18 February 2016

2016- n° 41

Consumer prices decreased by 1.0% in January 2016, they were up 0.2% year-on-year Consumer price index - final results - January 2016

In January 2016, the Consumer Prices Index (CPI) fell by 1.0% after an increase by 0.2% in December. Seasonally adjusted, it diminished by 0.2% after a stability in December. Year-on-year, it grew by 0.2% in January 2016, as in the previous month.

The downturn in the CPI in January came mainly from the seasonal fall of manufactured product prices during the winter sale period and from the drop in prices of services tourism-related. Furthermore, petroleum product prices decreased again.

In January 2016, the manufactured product prices were broadly down 3.0% due to the winter sales. Year-on-year, they were almost unchanged (−0.1% after −0.3% in December 2015). Thus, as every year, clothing and footwear prices fell sharply in January (−16.7%; −0.6% year-on-year). To a lesser extent, winter sales contributed to the decrease in prices of many other products, as household textiles, travel goods and other carriers of personal effects (−4.3%; +0.2% year-on-year), furniture and furnishings (−3.1%; +0.4% year-on-year), jewelry, clocks and watches (−1.3%; +2.4% year-on-year) as well as domestic appliances (−1.1%; −0.3% year-on-year).

In January 2016, service prices diminished slightly month-on-month (−0.1% after +0.6% in December) and rose by 1.1% year-on-year. In fact, after the end-of-year holidays, tourism-related service prices fell back seasonally in January, particularly airfares (−11.4%; −3.7% year-on-year), package holidays (−5.4%) and accommodation services (−2.1%; +3.6% year-on-year). On the opposite, as every year, many fees have been risen in January, in particular postal rates (+3.8%), financial services (+1.7%; +2.1% year-on-year) as well as insurance fees (+1.2%; +2.6% year-on-year).

Energy prices continued to drop in January 2016 (−1.2%, as in December ; −3.8% year-on-year) due to the ongoing downward trend in petroleum product prices (−3.6% in January ; −7.4% year-on-year). Prices of heating fuels tumbled again (−8.3%; −17.2% year-on-year). The fall in motor gas prices was cushioned by higher taxes on these products. Moreover, due to rises in duties, prices of town gas were up by 1.0% in January (−8.2% year-on-year) and those of electricity by 2.2% (+4.1% year-on-year).

In January 2016, food prices declined again slightly (−0.1% month-on-month after −0.3% in December), as fresh foodstuff prices decreased moderately (−0.4%), in particular for fresh fruits (−2.5%). Prices of fresh vegetables picked up softly (+0.7%) while fresh fish prices (+3.8%) and those of fresh seafood (+2.4%) rose significantly. Excluding fresh foodstuffs, food prices were unchanged, as in the previous month. Year-on-year, they were up 0.2%, as in December.

In January 2016, the core inflation indicator (ISJ) rose by 0.1% as in December 2015. Year-on-year, it grew by 0.9%, as in December 2015. The Harmonized Index of Consumer Prices (HICP) was down 1.1% month-on-month in January. Year on year, it rose by 0.3%, as in the previous month.

The CPI monthly and annual variations are inchanged from the provisional estimates released on 29th January. The HICP monthly and annual variations have been revised down by 0.1 points. The variation of the core inflation indicator (ISJ) in December 2015 was revised up 0.1 points compared to the data released on 13th January 2016 due to a new estimation of seasonal adjustment parameters.