Consumer price index, 15 July 2014

The CPI was 137.4 (1998=100) in July 2014, compared to 134.4 in July 2013, which corresponds to a year-to-year growth of 2.2 per cent.

Monthly change: higher food prices

The CPI increased 0.7 per cent from June to July. Food prices rose 3.2 per cent. Every subgroup, with the exception of ice cream, had a price increase from June to July. The increase for several commodities can be explained by a price adjustment made by the food chains. At the same time, the “Agricultural Agreement 2014” gave higher “measure prices”, especially for fruits and vegetables. The price of fresh fruit rose by 5.0 per cent, while fresh vegetables had a price increase of 4.4 per cent. Higher commodity prices of cocoa may be the reason for the increased price of chocolate products from June to July.

The price of electricity including grid rent rose by 6.5 per cent from June to July. Airfares rose 13.9 per cent from June to July. In the same period, newspapers, books and stationary had a price increase of 6.3 per cent.

Clothing prices fell by 5.6 per cent due to sales activity, thus pulling the CPI down. The price of package holidays went down 3.3 per cent. As usual, the price of accommodation services fell in July; this year by 8.1 per cent.

Year-to-year growth: increased food prices and rents

The CPI rose by 2.2 per cent from July 2013 to July 2014. Over the last twelve months, food and non-alcoholic beverages had a price increase of 3.4 per cent. Higher prices among other groups such as fresh fruit, mineral water and soft drinks, and fresh and frozen fish contributed to the increase. Imputed rentals of home owners rose 2.7 per cent. Furniture and furnishings showed a price growth of 9.4 per cent, while operation of personal transport equipment had a price increase of 3.0 per cent. The prices of alcoholic beverages and tobacco together with restaurant services rose by 3.8 and 2.9 per cent respectively.

The year-to-year growth in the CPI was mainly dampened by lower prices of electricity and clothing. Electricity including grid rent fell by 6.2 per cent in the last twelve months. Clothing prices dropped 1.5 per cent in the same period.

Change in the year-to-year growth: further rise in the growth rate

The year-to-year growth in the CPI increased from 1.9 per cent in June to 2.2 per cent in July. The main contributor to the increase was the price development of electricity. The price of electricity including grid rent rose 6.5 per cent from June to July this year, compared to a fall of 0.3 per cent in the same period last year. The price of food and non-alcoholic beverages increased more from June to July this year than the year before, thus contributing to the rise in the growth rate. The price development of airfares also contributed to pulling the growth rate up.

On the other hand, the price development of clothing and package holidays helped dampen the year-to-year growth.

The year-to year growth in the CPI-ATE was 2.6 per cent in July, up 0.2 percentage points from June. The main contributor to the increase was price developments in food and non-alcoholic beverages, together with airfares.