Inflation increases from 1.82 % to 2.08 %

Consumer price index of June 2018

• Inflation increases from 1.82 % to 2.08 % in June.
• The consumer price index has increased by 0.11 point or 0.10 % this month.
• Inflation based on the health index has increased to 1.63 %, up from 1.49 %.
• The smoothed health index was running at 104.76 points in June.
• Inflation for services is now running at 1.31% and has reached its lowest level since May 2010, when it amounted to 1.30%.
• The most significant price increases in June were registered for motor fuels, natural gas and electricity. However, hotel rooms, fruit, vegetables, flowers and plants and holiday villages have had a decreasing effect on the index.

The consumer price index was running at 107.02 points in June 2018. It has increased by 0.11 point over the month. Inflation has gone up to 2.08 % from 1.82 %. The health index has gained 0.02 point to 107.01 points. Inflation based on the health index has gone up from 1.49 % to 1.63 %. The most significant price increases in June have been registered for motor fuels, natural gas and electricity. These increases were mostly offset by price decreases for hotel rooms, fruit, vegetables, flowers and plants and holiday villages.

The consumer price index has risen by 0.11 point or 0.10 % in June 2018 and now stands at 107.02 points, against 106.91 points in May 2018 (2013=100).

The health index has gone up by 0.02 point to 107.01 points in June, compared to 106.99 points in May. The smoothed health index was running at 104.76 points in June. 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.

The products with the largest upward effect in June were motor fuels, natural gas and electricity. However, hotel rooms, fruit, vegetables, flowers and plants and holiday villages provided the largest downward pressure compared to last month. The most important trends this month are:

Prices of motor fuels have increased on average by 2.5 %. Natural gas has also increased in price: 1.9 % on average compared to the previous month. Prices for electricity have increased on average by 0.8 % this month.

Hotel rooms have been on average 8.1 % less expensive compared to the previous month. Fruit has become on average 3.0 % less expensive. Prices of vegetables have decreased on average by 1.5 %. Flowers and plants have become on average 5.1 % cheaper this month. After seasonal adjustment, prices of holiday villages have gone down by on average 3.7 % compared to last month.

Inflation now stands at 2.08 %, against 1.82 % in May and 1.52 % in April. Inflation based on the health index amounted to 1.63 % this month compared to 1.49 % in May and 1.36 % in April. Inflation without energy has increased to 1.54 % in June compared to 1.48 % last month and 1.39 % in April. Core inflation, which does not take into account price evolutions of energy products and unprocessed food, was running at 1.44 % in June. It remains stable compared to May and has increased compared to 1.38 % in April.

Food inflation now stands at 3.06 %, up from 2.53 % in May and 2.63 % in April. Fresh fruit now costs 11.8 % more than in June 2017. Fresh vegetables are cheaper: 2.4 % on an annual basis. Fish and shellfish are 3.8 % more expensive than a year ago. Butter is 19.6 % more expensive than last year. Prices for non-alcoholic beverages are now 4.3 % higher than in June last year. Prices for alcoholic beverages have gone up by 3.0 % on an annual basis. Tobacco prices have gone up by 6.2 % compared to June last year. Energy inflation is now running at 6.88 %, against 4.77 % in May and 2.62 % in April. Electricity is now 0.4 % less expensive than a year ago. Natural gas is 6.5 % more expensive than in June last year. Prices for domestic heating oil, calculated based on a smoothed 12-month moving average, have increased by 10.5 % in a year. Motor fuels are 14.9 % more expensive than last year. Inflation for services has gone down to 1.31 % from 1.58 %. Inflation for rents has slightly decreased and now stands at 1.00 %, compared to 1.01 % in May.

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

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

The main group with the largest upward effect on inflation in June was "Transport" with an effect of 0.34 percentage point. "Communication" had the largest downward effect on inflation, with -0.12 percentage point.

The main group with the largest contribution to inflation is "Transport" with 0.62 percentage point. The lowest contribution to inflation was registered by the main group "communication", with -0.03 percentage point.