Consumer price index, 15 April 2014

The CPI was 136.6 (1998=100) in April 2014, compared to 134.2 in April 2013, which corresponds to a year-to-year growth of 1.8 per cent.

Monthly change: higher prices of travels’

The CPI increased 0.4 per cent from March to April. Higher airfares contributed most to the rise with an increase of 21.0 per cent, and the rise must be seen in connection to the Easter holidays. Prices of newspapers, books and stationery showed a combined price increase of 7.7 per cent in the same period. Since the last measurement in January, package holidays showed a seasonally price growth of 9.8 per cent. From March to April financial services n.e.c. rose 1.1 per cent, while prices of household textiles together with gardens, plants and flowers increased 8.7 and 4.3 respectively.

From March to April prices of food and non-alcoholic beverages showed a joint decrease of 0.9 per cent, thus pulling the CPI down. Prices of food fell 0.6 per cent while prices of non-alcoholic beverages showed a price decrease of 3.1 per cent. The main contributors were price reductions of mineral waters and fruit juices, sugar and confectionery products together with meats, much as a result of sales activity in relation to the Easter holidays. From March to April prices of electricity including grid rent fell 4.1 per cent, mainly caused by mild weather in April.

Year-to-year growth: higher prices of transport, rents and food

The CPI rose by 1.8 per cent from April 2013 to April 2014. Over the last twelve months, prices of transport showed a price increase of 3.4 per cent, mainly due to higher prices of operation of personal equipment together with transport services. Imputed rentals for owner-occupiers rose 3.4 per cent in the last twelve months. In the same period, prices of food rose 3.3 per cent, and prices of alcoholic beverages and tobacco showed a joint price increase of 3.6 per cent. The prices of financial services n.e.c. rose 4.0 per cent, and the group furniture, furnishings and decorations increased 6.0 per cent. In the same period prices of restaurant services together with newspapers, books and stationery rose 2.8 and 6.9 per cent respectively. The last twelve months actual rentals paid by tenants rose, and higher prices were also measured for maintenance and repair of personal transportation.

The year-to-year growth in the CPI was mainly dampened by lower prices of electricity including grid rent which fell by 16.1 per cent. The CPI excluding electricity (CPI-AEL) rose 2.5 per cent in the last twelve months, hence electricity prices contributed to a 0.7 percentage point decrease in the year-to-year growth in the CPI.

Change in the year-to-year growth: weaker growth rate in the CPI

The year-to-year growth in the CPI fell from 2.0 per cent in March 2014 to 1.8 per cent in April 2014. The main contributor to the decline was the price development of food. Prices of food fell 0.6 per cent from March to April 2014, while increasing 1.3 per cent in the same period in 2013. The price development of food can be seen in connection to Easter holiday falling in March in 2013 while falling in April in 2014. Airfares rose 21.0 per cent from March to April 2014 while falling in the same period the year before, thus pulling the growth in the CPI up. The price development in airfares must be seen in connection with the before mentioned Easter holidays.

The year-to year growth in the CPI-ATE was 2.5 per cent in April, down 0.1 percentage points from March. The main contributor to the decline was the price development of food as explained above.