Consumer price index, 15 October 2007

The CPI was 118.9 (1998=100) per October 2007 compared to 119.1 in the same period last year. This is equivalent to a decrease of 0.2 per cent in the last 12 months, up 0.1 percentage points from September. The year-to-year growth in the CPI-ATE was 1.4 per cent in October, a decrease of 0.2 percentage points from September.

Higher electricity prices

The price development of electricity was the main contributor to the 0.3 per cent growth in the CPI from September to October. Electricity prices, including costs of electricity transport were up 7.7 per cent from last month.

Clothing and footwear also contributed to the CPI rise with a 1.7 per cent increase in October. This means that the prices are back to the level before the summer sale.

Prices of food fell by 1.2 per cent, thus having a dampening effect on consumer prices. The price fall was particularly evident for fruit and vegetables. Airline fares and petrol prices also contributed to offset the increase, falling by 2.7 and 2.2 per cent respectively.

Year-to-year change: Consumer prices still down

Prices of electricity were 37.6 per cent lower in October 2007 than one year ago. This is the main contributor to the negative year-to-year growth in the CPI. The growth in the CPI excluding electricity has increased by 1.7 per cent in the past twelve months. Clothing and footwear have also contributed to the negative growth, with prices falling by 6.0 per cent from October last year. Prices of audiovisual equipment have fallen by 5.2 per cent in the same period.

Pulling in opposite direction are prices of goods related to maintenance and repair of dwellings, which have risen by 6.7 per cent. Food prices have risen by 2.0 per cent while imputed rentals for housing have increased by 1.5 per cent. In addition, accommodation and restaurant services have increased by 4.5 per cent compared to October 2006. Prices of transport services and petrol have also increased.

The year-to-year growth in the CPI rose from -0.3 per cent in September to -0.2 per cent in October, mainly due to the increase in prices of electricity last month. The year-to year change in the CPI adjusted for tax changes (CPI-AT) increased from -0.6 per cent in September to -0.3 per cent in October.