13 March 2014

2014- n° 58

The Consumer Prices Index increased by 0.6% in February 2014; it rose by 0.9%, year-on-year Consumer price index - final results - February 2014

The Consumer Prices Index (CPI) increased by 0.6% in February 2014, after a decline by 0.6% in January 2014. Compared with February 2013, it grew by 0.9%, after +0.7% in the year to January 2014. Excluding tobacco, the CPI increased by 0.5% in February 2014 and by 0.8% year-on-year. Seasonally adjusted, it rose by 0.2% in February 2014. The rebound of the CPI in February came, mainly, from the end of winter sale and its impact on clothing and footwear prices, and in a lesser manner, on manufactured product prices. In january 2014, the effect of winter sales was slightly increased by the price collection schedule (see below). In February 2014, some upward pressures on the change in the CPI came also from seasonal upturns in service prices linked with winter holidays while the prices of energy and food stayed little dynamic.

In February 2014, manufactured goods prices bounced as a consequence of the end of winter sales; they increased by 1.3% compared with January 2014 and almost stabilized year-on-year (-0.1%). Thus, the prices of clothing and footwear increased by 6.2% in February 2014 catching up partly their drop in January (-15.4%). It was the same but in a lesser manner for other manufactured product prices which were up 0.6% in February 2014 after a price cut of 0.5% in January 2014. Especially, the prices of furniture and furnishing increased by 1.9% in February 2014 (after a fall of 2.5% in January) and by 2.1% year-on-year; those of Jewellery, clocks and watche by 1.5% (after -2.9% in January; -1.9% year-on-year) and those of major household appliances rose by +0.8% (after -2.2% in January; - 2.3% year on year). Moreover, the decline in the prices of health products continued in February; they decreased by -0.1% (-2.6% year-on-year).

Overall, prices of services increased by 0.4% in February 2014 (+1.9% year-on-year after +1.7% in the year to January 2014) mainly owing to the changes in some service prices linked with winter holidays. Thus, in February 2014, the prices of holiday accomodation services bounced (+16.2% ; +1.9% year-on-year). The prices of package holidays grew also in February 2014 but have less contributed to the growth of the CPI in February this year than last year, increasing only by 3.3% (-3.0% year-on year) in February 2014 after

+6.5% in February 2013. Moreover, the mobile phone service prices remained almost stable in February 2014 (-0.1%) but have sped up year-on-year (+2.9% after +0.1% in January 2014); they dropped by 2.8% in February 2013. Finally, the tariffs of motor insurances increased in February 2014 (+3.2% after -2.5% in January 2014; -4.2% compared with the same month one year ago) due to the end of promotions.

In February 2014, the prices of energy stayed almost stable (+0.1% after +0.8% in January 2014; -1.2% year-on-year) in conjunction with the relative stability of petroleum product prices during last months (+0.1% in February 2014 after -0.2% in January; -5.4% year-on-year). In February 2014, city gas prices grew by 0.3% (after +0.8% in January; +0.5% year-on-year) while those of electricity remained unchanged (+7.5% year-on-year).

Food prices decreased by 0.1% in February 2014 (as in January 2014; +0.1% year-on-year) as a consequence of a drop in the fresh foodstuff prices (-0.9%; -1.2% year-on-year), especially those of fresh vegetables which fell by -3.4% in February (-1.9% year-on-year) in the wake of a large supply supported by mild temperatures. At the same time, the seasonal increase in the prices of fresh fruits was less pronounced this year (+1.7% in February 2014; -2.9% year-on-year) than last year (+2.7% in February 2013). Excluding fresh foodstuffs, the food prices remained stable in February 2014 (+0.3% year-on-year) after a slight increase in January 2014 (+0.1%). Only alcoholic beverage prices remained relatively dynamic in February 2014 (+0.3%; +2.3% year-on-year).

In February 2014, the core inflation indicator (ISJ) grew 0.5% after a decrease by 0.4% in January 2014. After an unusually low level in January, its annual rate of change came back to a level near from December 2013 (+0.7%). The Harmonized Index of Consumer Prices (HICP) increased by 0.6% in February 2014 and by 1.1 % year-on-year (after +0.8% year-on-year in January 2014 and +1.2% in February 2013).