Inflation increases from 2.17 % to 2.24 %

Consumer price index of August 2018

• Inflation increases from 2.17 % to 2.24 % in August.
• The consumer price index this month increases by 0.15 point or 0.14 %.
• Inflation based on the health index has increased to 1.77 %, up from 1.71 %.
• The smoothed health index is running at 105.10 points in August. The central index has therefore been reached.
• The most significant price increases in August were registered for electricity, motor fuels, the purchase of vehicles and bundled telecommunication services. However, vegetables and fish and shellfish have had a decreasing effect on the index.

The consumer price index is running at 107.58 points in August 2018. It has increased by 0.15 point over the month. Inflation has gone up to 2.24 % from 2.17 %. The health index has gained 0.11 point to 107.55 points. Inflation based on the health index has gone up from 1.71 % to 1.77 %. The most significant price increases in August were registered for electricity, motor fuels, the purchase of vehicles and bundled telecommunication services. These increases were mainly offset by price decreases for vegetables and fish and shellfish.

The consumer price index has risen by 0.15 point or 0.14 % in August 2018 and now amounts to 107.58 points, compared to 107.43 points in July 2018 (2013=100).

The health index has gained 0.11 point to 107.55 points in August, up from 107.44 points in July. The smoothed health index is running at 105.10 points in August. The central index for public service and social benefits, set at 105.10 points, has therefore been reached. This means that social security benefits and pensions will be raised by 2 % in September. Wages in the public sector will be raised by 2 % in October. The last time the central index was exceeded was in May 2017.

Products with the largest increasing effect in August are electricity, motor fuels, the purchase of vehicles and bundled telecommunication services. Most of the downward pressure came from vegetables and fish and shellfish. The most important trends this month are:

Prices of electricity have increased on average by 1.5 %. Motor fuels have become 0.9 % more expensive compared to last month. The purchase of vehicles became on average 0.4 % more expensive in August. Prices for bundled telecommunication services have increased on average by 0.9 %.

Vegetables have been on average 2.5 % less expensive compared to the previous month. Fish and shellfish have become on average 2.1 % cheaper.

Inflation is now running at 2.24 %, compared to 2.17 % in July and 2.08 % in June. Inflation based on the health index amounted to 1.77 % this month compared to 1.71 % in July and 1.63 % in June. Inflation without energy has increased to 1.39 % in August, up from 1.38 % in July and 1.54 % in June. Core inflation, which does not take into account price evolutions of energy products and unprocessed food, stands at 1.50 % in August, against 1.36 % in July and 1.44 % in June.

Food inflation is now running at 1.55 %, down from 2.28 % in July and 3.06 % in June. Fresh fruit now costs 1.6 % more than in August 2017. Fresh vegetables are cheaper: 1.1 % on an annual basis. Fish and shellfish are 2.2 % less expensive than a year ago. Butter is 13.3 % more expensive than last year. Prices have increased by 3.3 % for non-alcoholic beverages and by 3.2 % for alcoholic beverages. Tobacco prices have gone up by 6.3 % compared to August last year. Energy inflation is now running at 9.92 %, up from 9.19 % in July and 6.88 % in June. Electricity is now 3.3 % more expensive than a year ago. Natural gas is 12.8 % more expensive than in August last year. Prices for domestic heating oil, calculated based on a smoothed 12-month moving average, have increased by 12.7 % in a year. Motor fuels are 15.9 % more expensive than last year. Inflation for services has gone up to 1.89 % from 1.56 %. Inflation for rents has slightly decreased and now stands at 1.00 %, compared to 1.03% in July.

The following products and services have registered the sharpest price increases compared to last year in August:

The following products and services have registered the sharpest price decreases compared to last year in August:

The main group with the largest upward effect on inflation in August was "Transport" with an effect of 0.48 percentage point. The largest downward effect was measured for "food and non-alcoholic beverages" (-0.17 percentage point).

The main group with the largest contribution to inflation is "Transport" with 0.77 percentage point. The lowest contribution to inflation was registered by the main group "education", with 0.01 percentage point.