Consumer price index, 15 February 2007

The CPI was 117.5 (1998=100) per February 2007 compared to 116.6 in the same period last year, which is equivalent to a growth of 0.8 per cent in the last twelve months, down from 1.2 per cent in January. The year-to-year growth in the CPI-ATE was 1.1 per cent in February, an increase of 0.1 percentage point from January.

Higher food and furniture prices from January to February

The CPI rose by 0.4 per cent from January to February as result of price increases in several consumer groups. Higher prices of food and furniture were the main contributor to the growth. Prices of food rose by 1.4 per cent. Most of the groups showed a price increase, however prices of fish and the group coffee, tea and cocoa had the highest increase.

Prices of furniture increased by 5.9 per cent in February following the January sales. Prices of furniture fell by 3.8 per cent in January, and the price level is now above the level before the sales activities started. Clothing prices increased by 1.5 per cent in February, after a strong decline of 12.0 per cent last month. Sales activities were also registered in February.

Prices of materials for maintenance and repair of dwellings and restaurant services rose by 2.0 per cent and 2.7 per cent respectively.

In the opposite direction, electricity prices including cost of electricity transport contributed to dampen the price growth. With a 6.9 per cent decline in February, electricity prices have fallen by a total of 32.6 per cent since September last year. The growth in the consumer price index adjusted for electricity (CPI-AEL) was 0.7 per cent.

Low price growth in past 12 months

The CPI increased by 0.8 per cent from February 2006 to February 2007. The strongest contribution to the price growth came from food and non-alcoholic beverages, which increased by 2.4 per cent. Prices of maintenance and repair of dwellings showed an increase of 4.3 per cent, and prices of both products and services rose. Actual and imputed rentals for housing increased by 2.0 and 1.7 per cent respectively from February 2006 to February 2007.

Other important contributors to the year-to-year growth in the CPI came from price increases in different services. Prices connected to recreation and culture services rose by 7.4 per cent, while transport services rose by 4.1 per cent. Prices of restaurants and accommodation services rose by 3.8 per cent.

Having been the most significant driving factor behind CPI growth last year, electricity prices contributed to the decline in year-to-year growth in February. Electricity prices were 11.5 per cent lower than in the same period last year.

Prices of clothing contributed to dampen CPI growth in the last twelve months with a price fall of 7.2 per cent. Lower prices of audio-visual equipment and telephone services also contributed to pull down CPI growth.

Fall in the year-to-year growth in CPI, slight increase in CPI-ATE

The year-to-year growth in the CPI fell from 1.2 per cent in January down to 0.8 per cent in February. The decrease was mainly due to the price development in electricity. Prices of electricity fell by 6.9 per cent in February this year, but increased by 9.3 per cent in February last year.

The year-to-year growth in the CPI-ATE increased from 1.0 to 1.1 per cent from January to February 2007.