Inflation increases for the second month in a row and amounts to 1.41 %

Consumer price index for January 2020

• Inflation increases from 0.76 % to 1.41 % in January.
• The consumer price index increases by 0.65 point or 0.60 % this month.
• Inflation based on the health index has risen from 0.67 % to 1.12 %.
• The smoothed health index amounted to 107.04 points in January.
• The most significant price increases in January were registered for rents, motor fuels, domestic services, vegetables, hotel rooms, dairy products and health insurances. However, electricity, natural gas and holiday villages have had a decreasing effect on the index.

The consumer price index is running at 109.69 points in January 2020. It has increased by 0.65 point over the month. Inflation has risen from 0.76 % to 1.41 %. The health index has gained 0.54 point to 109.72 points. Inflation based on the health index has increased from 0.67 % to 1.12 %. The most significant price increases were registered for rents, motor fuels, domestic services, vegetables, hotel rooms, dairy products and health insurances. These increases were partly offset by price decreases for electricity, natural gas and holiday villages.  

The consumer price index rose by 0.65 point or 0.60 % in January 2020 and now stands at 109.69 points, compared to 109.04 points in December 2019 (2013=100).

The health index has increased by 0.54 point to 109.72 points in January, compared to 109.18 points in December. The smoothed health index amounted to 107.04 points in January. The central index for public service and social benefits, set at 107.20 points, has not been reached. The last time the central index was exceeded was in August 2018.

The largest upward pressure in January came from rents, motor fuels, domestic services, vegetables, hotel rooms, dairy products and health insurances.

However, electricity, natural gas and holiday villages provided the largest downward pressure compared to last month. The most important trends this month are:

In January, rents have increased by 2.0 % compared to the previous month. Motor fuels have increased by 3.2 %. Domestic services were 5.7 % more expensive. In January, prices for vegetables, hotel rooms, dairy products and health insurances have increased by 3.2 %, 6.9 %, 1.8 % and 2.9 %, respectively.

Electricity and natural gas became this month 2.4 % less expensive. Holiday villages have, after seasonal adjustment, become on average 6.6 % less expensive compared to the previous month.

Inflation now stands at 1.41 % compared to 0.76 % in December and 0.39 % in November. Inflation based on the health index amounted to 1.12 % this month compared to 0.67 % in December and 0.48 % in November. Inflation without energy increased to 1.79 % in January, compared to 1.37 % in December and 1.35 % in November. Core inflation, which does not take into account price evolutions of energy products and unprocessed food, stands at 1.86 % in January, compared to 1.45 % in December and 1.46 % in November.

Food inflation now stands at 1.03 % compared to 0.45 % last month and 0.24 % in November. Fresh fruit were 2.8 % more expensive than in January 2019. Prices of fresh vegetables have decreased by 2.5 % in a year. Fish and shellfish have become 0.1 % less expensive compared to January 2019. Prices for meat have increased by 2.6 % compared to last January. Prices for non-alcoholic beverages are on average 0.2 % higher than in January last year. Alcoholic beverages are now 0.3 % more expensive than a year ago. Tobacco prices have gone up by 4.8 % compared to January 2019.

Energy inflation is now running at -1.17 %, compared to -4.36 % last month and -7.29 % in November. Electricity is now 6.3 % less expensive than a year ago. Natural gas is 14.7 % less expensive on an annual basis. Prices for domestic heating oil, calculated based on a smoothed 12-month moving average, have decreased by 0.7 % in a year. Motor fuels are now 8.9 % more expensive than a year ago. Inflation for services has increased to 2.37 % from 1.93 %. Finally, inflation for rents increased to 2.78 % in January from 1.24 % in December.

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

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

The main group with the largest upward effect^[i] on inflation in January was “Transport” with an effect of 0.43 percentage point. The largest downward effect was measured for “Housing, water and energy” (-0.60 percentage point).

The main group with the largest contribution^[ii] to inflation is “Transport” with 0.59 percentage point. The lowest contribution to inflation was registered by the main group “Housing, water and energy”, with -0.22 percentage point.