14 January 2015

2015- n° 6

The Consumer Prices Index increased by 0.1% in December 2014; they rose by 0.1% year-on-year Consumer price index - final results - December 2014

Here are published the monthly and year-on-year rates of change of the Consumer Price indexes in December 2014. The annual average rates of change of the CPI will also be published on 14th January. The annual averages and the year-on-year rates of change are different: the annual averages refer to the whole set of prices oberved during one year compared to those observed during the previous year. The year-on-year price changes refer to the prices observed during a particular month compared to those observed during the same month of the previous year.

In December 2014, the Consumer Prices Index (CPI) increased by 0.1% in December 2014 after a decline by 0.2% the previous month. Seasonally adjusted, it went down by +0.1% in December 2014. The CPI grew by 0.1% year-on-year in December 2014, down from +0.3% in November 2014.

In December 2014, the seasonal price increases of some services were largely offset by a new drop in energy prices, especially from petroleum products and, to a lesser extent, by a slight reduction in food product prices.

Overall, service prices grew by 0.6% in December 2014 (+1.6% year-on-year). This increase, higher than last year (+0.5% in December 2013), was largely due to the seasonal increase in services related to tourism. Hence, airfares went up by 13.2% (+1.4% year-on-year), those of package holidays by 10.9% (—1.1% year-on-year) and those of holiday accomodation services by 12.2% (+3.2% year-on-year). As in each year, the refuse collection fees increased in December (+1.9% in 2014; +2.3% in 2013). Besides, insurance tariffs increased significantly in December (+2.3%; +3.0% year-on-year) after the end of special offers in autumn 2014.

In December 2014, energy prices dropped markedly (—2.6% after —0.6% in Novembre 2014; —4.4% year-on-year), in the wake of the fall of the prices of petroleum products (—4.6%; —10.6% year-on-year). Prices of motor fuels went down by 4.4% in December (—9.9% year-on-year) and those of heating fuels by 6.8% (—16.7% year-on-year). Moreover, prices of town gas

diminished (—0.7%; +1.2% year-on-year) while electricity rates remained steady (+4.8% year-on-year).

In December 2014, food prices declined by 0.1% compared to November 2014. Year-on-year, their donwturn accelerated (—0.4%, down from —0.2% in November). The decreases in unprocessed fresh foodstuffs came from those, seasonal, of fresh fruits (—1.3%, +0.8% year-on-year) and those, unusal in December, of fresh fishes and seafood (—1.0%, +1.2% year-on-year). Excluding unprocessed fresh products, food prices decreased also by 0.1% month-on-month and by 0.4% year-on year, as in November. This decline was spread across several product groups and was particularly marked for cereals (—3.0% y-o-y), eggs (—2.5%), sugar, jams, honey, chocolate and confectionery (—2.6%) and non-alcoholic beverages (—1.5%).

As in 2013, prices of manufactured products were slightly up in December 2014 (+0.1%) due to the seasonal increase in clothing and footwear prices (+0.6% in December 2014 as in December 2013; +0.2% year-on-year). On the opposite, prices of medical products declined again (—0.2%; —3.0% year-on-year). Prices of other manufactured products remained broadly stable in December (—1.1% year-on-year): the downward trend was still at work for high-tech products (—0.8%; —7.3% year-on-year for audiovisual, photographic and information processing equipments), but this variation was offset by the ends of special offers, especially on furniture and furnishings (+0.7%; +0.3% year-on-year).

In December 2014, the core inflation indicator (ISJ) increased by 0.1%. Its annual rate of change remained slightly negative (—0.1% year-on-year after —0.2% in November). The Harmonized Index of Consumer Prices (HICP) was up 0.1% compared to November and rose also by 0.1 compared to December 2013 (after +0.4% year-on-year in November 2014).