Consumer price index, 15 December 2013

The CPI was 135.1 (1998=100) in December 2013, compared to 132.4 in the same month the year before. This corresponds to a year-to-year growth of 2.0 per cent. Annual growth in the CPI was 2.1 per cent for 2013, while it was 1.6 per cent for the annual CPI-ATE .

Monthly change: lower prices on food and electricity

The CPI decreased by 0.1 per cent from November to December. Food prices contributed most to the fall with a combined price decrease of 1.5 per cent. Several sub groups of foods showed reduced prices, and the largest decreases were measured for meat and fruit – down by 1.9 and 6.0 per cent respectively. Prices of electricity including grid rent fell by 1.9 per cent due to low temperatures in December.

Prices on non-alcoholic beverages were 1.8 per cent lower in December than in November, while clothing prices fell by 0.8 per cent in the same period.

The overall rise in the CPI was mainly curbed by a typical increase for airfares and books in December. Airfares increased by 8.6 per cent from November to December, mostly due to higher prices on domestic flights. In the same period, prices of books went up by 8.8 per cent.

Year-to-year growth: higher housing expenses and increased prices on food and non-alcoholic beverages

The CPI rose by 2.0 per cent from December 2012 to December 2013. Imputed rentals for home owners and prices on food and non-alcoholic beverages account for most of the growth in the last twelve months. Imputed rental for home owners went up by 3.8 per cent, while prices on food and non-alcoholic beverages in total increased by 2.8 per cent in this period.

The price level of maintenance and repair of personal transport equipment was 3.6 per cent higher in December 2013 than in the same period the year before. Prices of alcoholic beverages and tobacco increased 5.0 per cent, while furniture and furnishings etc. went up by 6.3 per cent in this period. Restaurant services and higher actual rentals also contributed to the positive growth in the last twelve months, with price increases of 3.1 and 4.1 per cent respectively.

However, clothing prices fell 3.0 per cent from December 2012 to December 2013, thus making it the consumption group that had the strongest dampening effect on the CPI in this period. Among other important dampening factors were prices on telecom services, which fell 2.5 per cent, and a price fall of 4.2 per cent for goods and services for routine household maintenance.

Change in the year-to-year growth: drop in the CPI

The year-to-year growth in the CPI decreased from 2.5 per cent in November to 2.0 per cent in December. The main contributor to the decrease in the CPI was the development of electricity prices. Prices of electricity including grid rent fell by 1.9 per cent from November to December 2013, while increasing 12.1 per cent in the same period in 2012.

The year-to year growth in the CPI-ATE was 2.0 per cent in December; unchanged from November.

Annual growth: lower electricity prices in 2013

Annual growth in the CPI showed an increase of 2.1 per cent from 2012 to 2013. The development of electricity prices was the main cause of the overall rise from 2012. Prices of electricity including grid rent increased 16.1 per cent in this period. Increased rents in 2013 compared to 2012 was another factor that pushed up the annual growth.

In the opposite direction, clothing fell by 2.5 per cent from 2012 to 2013, thereby dampening the annual growth.