Consumer price index, 15 October 2003

The CPI stood at 112.4 (1998=100) in October this year in comparison with 110.6 in October last year.

Consumer prices down 0.1 per cent from September to October

The tariffs on electricity and the petrol prices are the largest contributors to the decrease in the CPI. The tariffs on electricity decreased by 2.5 per cent in October. Only the electricity prices fell, while the cost connected to transporting energy rose. The petrol prices fell 2.1 per cent from last month. The CPI excluding energy products (CPI-AE) increased by 0.1 per cent.

Prices of food went down from September to October. The price fall of 0.6 per cent can be explained by lower prices of vegetables and fruit. Fish and some dairy products showed a price reduction as well.

Telephone services fell by 0.6 per cent since last survey. From September to October the prices of accommodation- and transport services fell by 1.4 and 0.3 per cent respectively.

Prices of clothing and footwear, on the other hand, rose from September to October by 1.2 per cent. The price level of clothing and footwear are still lower than it was before the summer sale started. Furniture also showed an increase in the prices.

Year-to-year change: Tariffs on electricity contribute to price growth

The CPI has increased by 1.6 per cent from October 2002 to October 2003. Like previous months, the tariffs on electricity are the one dominating contributor to the year-to-year growth in the consumer prices. Despite a price decline of 2.5 per cent from September to October, the tariffs on electricity are 23.0 per cent higher compared with same period last year. The CPI excluding electricity and the CPI excluding energy products (CPI-AE) have both shown a growth of 0.9 per cent in the same period.

The cost for owner-occupied housing and rentals for housing have risen by 3.9 per cent since October last year and thereby contributed to the CPI growth. The food prices are another contributor as the prices have showed an increase clearly above average. In particular, the prices of fresh vegetables have pulled up the overall rise in the food prices.

There have been registered a considerable price growth for different services during the last 12 months. Insurance premiums have gone up 7.7 per cent, while the prices of health- and transport services have risen by 8.8 and 4.5 per cent respectively.

The prices of clothing are the one most dominating factor counteracting the above development. The prices are 13.7 per cent below last years price level. The growth in the consumer prices has also been dampened by the prices of audiovisual equipment as the prices have fallen by 8.5 per cent the last 12 months.

Fall in the year-to-year growth

The year-to-year growth in the CPI went from 2.1 per cent in September to 1.6 per cent in October. The decrease is principally caused by the tariffs on electricity. The tariffs dropped 2.5 per cent in October this year, opposed to a price rise of 6.0 per cent in October last year. The prices of clothing and footwear showed a smaller price rise in October this year compared to the same period last year. The prices of petrol as well as insurance premiums contributed to reduce year-to-year change in October.

The CPI adjusted for tax changes (CPI-AT) decreased from 1.9 per cent in September to 1.6 per cent in October. The CPI-ATE went from 0.9 per cent to 0.8 per cent in the same period.