CPI up 1.4 per cent last 12 months

Actions taken by the Government to limit the corona virus outbreak have implications for the CPI also in June. Services with close to zero consumption in June accounts for about 3.5 per cent of total CPI measured in terms of the CPI weights. Almost 1.5 per cent had their prices estimated by the price development in the CPI-all-item index from May to June while approximately 2 per cent was estimated based on seasonal factors.

Price increase in June

The overall CPI rose by 0.2 per cent from May to June 2020. The rise was mainly caused by an increase in airfare of 18.7 per cent, largely due to the estimated prices of international passenger transport by air. Higher prices on petrol and auto diesel, clothes, household textiles and cars also contributed to the measured overall rise in June.

Prices on electricity and groceries pulled the CPI in the opposite direction. Electricity prices continued to fall in June, altogether prices on electricity including grid rent fell 8.3 per cent from May to June. Prices on food and non-alcoholic beverages fell by 0.8 per cent from May to June. Especially imported agricultural products showed price decrease in June, after several months of rising prices.

Increased prices for food last twelve months

The overall CPI rose by 1.4 per cent from June 2019 to June 2020. Prices on food contributed most with price increases of 3.5 per cent in this period. Imputed rentals, increased prices on restaurant and cultural services together with cars also contributed to the rise in the CPI.

The increase in the overall CPI was dampened by energy products, which among others consists of prices for electricity and fuel. Energy products collectively showed a 33.5 per cent price fall from June 2019 to June 2020. Electricity prices isolated dampened the CPI as the CPI excluding electricity CPI-AEL rose 2.7 per cent in this period.

Increase in the year-to-year growth

The year-to-year growth rose from 1.3 per cent in May to 1.4 per cent in June. The increase in the year-to-year growth was mainly caused by clothing prices which rose by 1.3 per cent from May to June this year, while falling 1.7 per cent in the same period in 2019. Prices on fuels and lubricants rose by 3.1 per cent from May to June in 2020, while falling 0.6 per cent in the corresponding period last year.

The rise in the year-to-year growth was dampened by price fall on food and non-alcoholic beverages from May to June this year, while increased prices was registered from May to June 2019.

The year-to-year growth in the CPI-ATE was 3.1 per cent in June 2020, an increase of 0.1 percentage points from May 2020.