13 August 2014

2014- n° 184

The Consumer Prices Index decreased in July 2014 by 0.3% ; it rose by 0.5%, year-on-year Consumer price index - final results - July 2014

In July 2014, the Consumer Prices Index (CPI) decreased by 0.3% after it remained almost unchanged during the last three months. It grew by 0.5% in the year to July 2014, as in June 2014, after +0.7% in April and May 2014. Excluding tobacco, the CPI rose by 0.4% in the year to July 2014.

This decrease in July 2014 came, mainly, from some seasonal variations of prices, especially the downward contributions of summer sales to the manufactured product prices and those of an abundant supply to the large decline in fresh foodstuff prices. In contrast, service prices rose seasonally at the time of the summer holidays. Moreover, enregy prices were up in July 2014 due to a slight rebound in motor fuel prices.

Service prices were up seasonally in July as each year at the time of the summer holidays. Thus, they overall increased by 1.1% in July 2014 (as in July 2013; +1.8% year-on-year). The largest contributions to this substantial rise came from the sharp increase in the prices of catering and accomodation services (+2.3% in July 2014 compared to June 2014; +3.0% year-on-year), from airfares (+14.0%; —0.3% year-on-year), from rentals of holiday homes (+25.6%; +0.4% year-on-year) and from package holidays (+17.5%; +0.2% year-on-year). Conversely, the prices of Passenger transports by railway decreased by 1.3% as the result of the partial repayment of annual subscriptions in July 2014. Furthermore, the prices of mobile phone services were overall steady (+1.0 % year-on-year) while actual rentals for housing slowed down (+1.0% year-on-year in July 2014 after +1.1% in June 2014).

Prices of manufactured products fell seasonally in July mainly due to summer sales (—2.9% in July 2014 after —2.8% in July 2013; —1.3% year-on-year). This large decrease in prices came especially from : clothing and footwear (—13.4%; —1.8% year-on-year), travel goods and other carriers of personal effects (6.3%; —1.0% year-on-year), furniture and furnishnigs (—3.4%; +0.4% year-on-year), household textiles (—2.9%; —1.3% year-on-year) as well as from jewellery, clocks and watches (—2.0%; —2.3% year-on-year). The summer sales also contributed to the downward trends in prices of the audio-visual, photographic and information processing equipments (—1.4%; —7.2% year-on-year).

In July 2014, food prices decreased by 0.5% compared to June 2014 (—1.4% year-on-year), mostly due to the seasonal decline in the prices of fresh foodstuffs (—3.6%). As weather conditions at the beginning of the year were better this year than last year, their prices fell also in July 2014 compared with the same month one year ago (—9.0%). Excluding unprocessed products, food prices diminished by 0.1% in July 2014 (as in June 2014) and by 0.2% year-on-year. The decrease in prices was substantial compared to July 2013 for some consumption items : —6.1% for homogenized baby food and dietary preparations, —2.3% for non alcoholic beverages and —2.2% for sugar, jam, honey, chocolate and confectionery.

Energy prices increased in July 2014 (+0.1% ; +0.7% year-on-year) due to a slight rise in the prices of petroleum products (+0.2% after +0.3% in June 2014; —1.5% year-on-year), only due to motor fuel prices (+0.3%; —1.3% year-on-on-year) while the prices of heating fuels decreased in July 2014 (—0.4%; —3.2% year-on-year). Moreover, the price of city gas declined again in July 2014 (—0.4% ; —2.3% year-on-year). Electricity prices were unchanged (+6.9% compared with the same month one year ago).

In July 2014, the core inflation indicator (ISJ) increased by 0.2% compared to June 2014 and by 0.1% compared to July 2013. The Harmonized Index of Consumer Prices (HICP) decreased by 0.4% in July 2014 ; its annual rate of change stood at +0.6% in July 2014, as in June 2014.