Consumer price index, 15 October 2009

The consumer price index (CPI) was 126.2 (1998=100) per October 2009 compared with 125.4 at the same time last year. This is equivalent to a year-to-year growth of 0.6 per cent in October, down from 1.2 per cent in September. The CPI fell by 0.2 per cent from September to October. The year-to year growth in the CPI-ATE was 2.1 per cent in October 2009, down 0.3 percentage points from 2.4 per cent in September.

Electricity prices behind fall in the year-to-year growth

The year-to-year growth in the CPI decreased 0.6 percentage points from 1.2 per cent in September to 0.6 per cent in October 2009. The development in electricity prices was the most important factor to the decline in the year-to-year growth. While the prices of electricity including grid rent rose by 0.8 per cent from September to October this year, they rose by 6.7 per cent in the same period in 2008. Another important cause was food prices, which fell by 1.3 per cent from September to October this year while they increased slightly in the same period last year. Airline fares also contributed to the fall in the year-to-year growth by falling more from September to October this year than the same period last year.

CPI down by 0.2 per cent from September to October

Food prices fell by 1.3 per cent from September to October, and were an important factor to the decline in the CPI. The prices of meat products decreased by 2.0 per cent, and contributed the most to the fall in the food prices. In addition, prices of fish, fresh vegetables and fresh fruit decreased. Airline fares fell by 13.1 per cent in October, after a sharp increase last month. The prices of fuels and lubricants declined by 3.0 per cent, and also contributed to the decline in the CPI from September to October.

Some components contributed in the opposite direction and most important were the prices of clothing which increased by 1.2 per cent from September to October. The prices of electricity and furniture also increased some and thus dampened the fall in the CPI.

Year-to-year growth in the CPI of 0.6 per cent

The CPI rose by 0.6 per cent from October 2008 to October 2009. An important factor behind the rise in the CPI was housing costs for owner-occupiers which rose by 2.9 per cent. Price increases for many services also contributed to the year-to-year growth. Prices of recreation and culture services increased 7.9 per cent, restaurant services by 3.8 per cent and package holidays by 5.6 per cent. The prices of food and non-alcoholic beverages increased by 2.6 per cent the past twelve months and also contributed to the growth in the CPI.

Prices of electricity including grid rent fell by 24.3 per cent from October 2008 to October 2009 and pulled in the opposite direction. Telecommunication services showed a price decrease of 10.4 per cent in the same period. Fuels and lubricants showed a price decrease of 4.7 per cent over the last twelve months, while airline fares fell by 15.9 per cent in the same period. The prices for audiovisual equipment and clothing also fell from October 2008 to October 2009 and contributed to dampen the growth in the CPI.