Consumer price index, 15 October 2004

The CPI stood at 114.0 (1998=100) in October this year compared with 112.4 in October last year, an increase of 1.4 per cent. The year-to-year growth in the CPI-ATE was 0.5 per cent in October - the same as last month.

Petrol prices pull up

The consumer prices rose by 0.3 per cent from September to October. The increase can to a large extent be explained by a broad and modest growth in most main commodity groups. The single factor that contributed mostly to the growth was an increase in the petrol prices of 4.2 per cent. The most significant development in the opposite direction was the electricity prices, which dropped by 3.2 per cent. The CPI excluding energy products (CPI-AE) increased as much as the CPI - 0.3 per cent.

The price increase of telephone equipment had an upward effect on the consumer prices. The same applied for the prices of clothing that had a price rise for the second successive month. The growth in the clothing prices was nevertheless not nearly as large as in September. The price drop in vegetables was on the other hand a factor that reduced the growth in CPI. The prices of vegetables dropped by 9.5 per cent due to a normal seasonally price decrease in October.

Price increase of 1.4 per cent the last 12 months

The consumer prices have increased by 1.4 per cent from October 2003 to October 2004. With an increase of 11.3 per cent the last 12 months the petrol prices are among the main driving forces behind the CPI growth. The increase in the prices of tobacco and maintenance and repair of dwelling pull in the same direction, with an increase of 19.1 and 3.6 per cent respectively the last 12 months.

The prices of recreational and cultural services contributed to the year-to-year CPI growth with an increase in prices of 4.9 per cent from October 2003. The prices of clothing and footwear pull in the opposite direction with a price decrease of 3.7 per cent the last 12 months. The price reduction has been larger for footwear than clothing in the period. The price development on passenger transport by air has since November last year contributed to reduce the year-to-year change in the CPI. This is also the case for October this year where prices are 12.7 per cent lower than the same month last year.

Audiovisual equipment has also had a dampening effect on the CPI growth with a price decrease of 6.0 per cent over the last 12 month.

Petrol prices provide an increase in the year-to-year growth

The year-to-year growth in the CPI went up from 1.1 per cent in September to 1.4 per cent in October. The growth is mainly caused by the price development on petrol. In October this year the petrol prices increased by 4.2 per cent in contradiction to a decline of 2.1 per cent in October last year.

The year-to-year growth in the CPI adjusted for tax changes (CPI-AT) went up from 0.6 per cent in September to 0.9 per cent in October. The growth in CPI-ATE over the last 12 months was unchanged from September to October and was 0.5 per cent.