Consumer price index, 15 June 2014

The CPI was 136.4 (1998=100) in June 2014, compared to 133.8 in June 2013, which corresponds to a year-to-year growth of 1.9 per cent.

Monthly change: Lower prices of furniture and airfares

The CPI decreased 0.2 per cent from May to June. Lower prices of furniture and furnishings together with airfares contributed most to the fall. From May to June, prices of furniture and furnishings fell 3.4 per cent, much as a result of sales activity on furniture. Airfares declined 6.8 per cent in the same period, mainly caused by lower prices on domestic flights. The prices of food showed a price fall of 0.5 per cent, and prices of electricity including grid rent decreased 1.5 per cent. Prices of audio visual equipment fell 0.8 per cent from May to June, and prices of package holidays decreased 1.3 per cent since the last measurement.

Prices of telephone services showed a price increase of 2.2 per cent, thus pulling the CPI up. From May to June, prices of books rose 2.4 per cent, and the prices of other services showed an increase of 1.7 per cent since the last measurement. Other consumption groups contributing to pulling the CPI up were equipment for sport, camping and open-air recreation, restaurant services and footwear. Actual and imputed rentals for housing both showed price increases.

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

The CPI rose by 1.9 per cent from June 2013 to June 2014. Over the last twelve months, imputed rentals of home owners rose 2.7 per cent, thus being the main contributor to the year-to-year growth. Prices of food increased 2.6 per cent in the same period, and it was higher prices of fish and dairy products that made the largest contribution to the rise. Furniture and furnishings showed price growth of 11.6 per cent, while operation of personal transport equipment showed a price increase of 3.4 per cent. In the same period, prices of recreation and culture rose 1.6 per cent. Financial services n.e.c. showed a price increase of 4.0 per cent, and prices of alcoholic beverages and tobacco together with restaurant services rose 3.4 and 2.9 per cent respectively.

The year-to-year growth in the CPI was mainly dampened by lower prices of electricity including grid rent, which fell by 12.2 per cent. The CPI excluding electricity (CPI-AEL) rose 2.4 per cent in the last twelve months, hence electricity prices contributed to a 0.5 percentage point decrease in the year-to-year growth in the CPI.

Change in the year-to-year growth: Slight increase in the growth rate

The year-to-year growth in the CPI increased from 1.8 per cent in May to 1.9 per cent in June. The main contributor to the increase was the price development of telephone services. Prices of telephone services rose 2.2 per cent from May to June this year, while falling 2.5 per cent in the same period last year. The price development of electricity including grid rent, clothing and footwear together with airfares also contributed to pulling the growth rate up.

On the other hand, the price development of food, package holidays together with imputed rentals for home owners contributed to dampen the year-to-year growth.

The year-to year growth in the CPI-ATE was 2.4 per cent in June, up 0.1 percentage points from May. The main contributor to the increase were the before mentioned price developments of telephone services, clothing and footwear together with airfares.