Inflation decreases from 1.71 % to 1.48 %

Consumer price index of February 2018

• Inflation decreased from 1.71 % to 1.48 % in February.
• Inflation has reached its lowest level since February 2016, when it amounted to 1.39%.
• The consumer price index has increased by 0.16 point or 0.15 % this month.
• Inflation based on the health index has declined from 1.64 % to 1.41 %.
• The smoothed health index stood at 104.10 points in February.
• The main upward pressure in February came from fruit, flowers and plants, electricity, dairy products and hotel rooms. However, motor fuels and sugar, chocolate and jam have had a decreasing effect on the index.

The consumer price index was running at 106.22 points in February 2018. It has increased by 0.16 point over the month. Inflation has dropped from 1.71 % to 1.48 %. The health index has gained 0.17 point to 106.54 points. Inflation based on the health index has decreased from 1.64 % to 1.41 %. The main upward pressure in February came from fruit, flowers and plants, electricity, dairy products and hotel rooms. These increases were mostly offset by price decreases for motor fuels and sugar, chocolate and jam.

The consumer price index rose by 0.16 point or 0.15 % to 106.22 points in February 2018, compared to 106.06 points in January 2018 (2013=100).

The health index went up by 0.17 point to 106.54 points in February, compared to 106.37 points in January. The smoothed health index stood at 104.10 points in February. The central index for public service and social benefits, set at 105.10 points, has not been exceeded. The last time the central index was exceeded was in May 2017.

Products with the largest increasing effect in February were fruit, flowers and plants, electricity, dairy products and hotel rooms. However, motor fuels and sugar, chocolate and jam have had a decreasing effect on the index compared to last month. The most important trends this month are:

Prices of fruit have increased on average by 3.0 %. Prices for flowers and plants were up on average by 6.7 %. As every year in February, higher prices were registered especially for roses due to Valentine's Day. Electricity is on average 0.8 % more expensive in February. Prices for dairy products have increased by 0.9 % compared to the previous month. Hotel rooms have become on average 2.6 % more expensive in February.

Sugar, chocolate and jam were 3.3 % cheaper in February. The main price decrease was registered for chocolate. Motor fuels have been on average 0.6 % less expensive compared to the previous month.

Inflation now stands at 1.48 % compared to 1.71 % in January and 2.13 % in December. Inflation based on the health index amounted to 1.41 % this month compared to 1.64 % in January and 2.02 % in December. Inflation without energy fell to 1.42 % in February compared to 1.55 % last month and 1.65 % in December. Core inflation, which does not take into account price evolutions of energy products and unprocessed food, amounts to 1.60 % in February, compared to 1.65 % in January and 1.68 % in December.

Food inflation is now down to 1.43 % from 2.20 % last month and 2.10 % in December. Fresh fruit now costs 5.1 % more than in February 2017. Fresh vegetables are cheaper: 14.7 % on an annual basis. Fish and shellfish are 1.8 % more expensive than a year ago. Oils and fats are 8.8 % more expensive than last year. Especially the price of butter is higher (inflation of 18.6 %). Prices for non-alcoholic beverages are now 3.7 % higher than in February 2017. For alcoholic beverages consumers have now to pay 2.7 % more than a year ago. Tobacco prices have gone up by 5.6 % compared to February last year. Energy inflation is now running at 2.03 %, compared to 2.99 % last month and 6.49 % in December. Electricity is now 1.2 % less expensive than a year ago. Natural gas is 3.6 % more expensive than in February last year. Prices for domestic heating oil, calculated based on a smoothed 12-month moving average, have increased by 10.8 % in a year. Motor fuels are 1.8 % more expensive than last year. Inflation for services has gone up to 2.00 % from 1.91 %. Inflation for rents has decreased and now stands at 0.96 %, compared to 1.16 % in January.

The main group with the largest upward effect on inflation in February was "Hotels, cafés and restaurants" with an effect of 0.15 percentage point. The largest downward effect was measured for the group "Interior decoration and household appliances" (-0.09 percentage point).

The main group with the largest contribution to inflation is "housing, water and energy" with 0.31 percentage point. The lowest contribution to inflation was registered by the main groups "communication" and "education", with 0.01 percentage point.