Posts tagged Harmonised Index of Consumer Prices

Consumer prices where lower than expected in December leading many to believe that recovery is not under way quite yet.  There seem to be two differing beliefs about the economy. One of them says the economy is starting to improve and the other is basically saying we are entering wave 2 which means the worst is yet to come.

Consumer prices decrease slightly

The National Statistics Office has reported that in December, the Harmonised Index of Consumer Prices went down to 108.38 from 108.57 in November 2009. In December 2009, the Harmonised Index of Consumer Prices went down by 0.2 per cent over the previous month.

This primarily reflected a drop of 1.0 per cent in the Food and Non-alcoholic beverages Index, mainly due to a decrease in the price of vegetables. The Recreation and Culture Index went down by 0.5 per cent, mainly on account of lower prices for package tours. Downward shifts in the prices of some jewellery items and certain financial services caused the Miscellane- ous Goods and Services Index to decline by 0.2 per cent.

The Transport Index registered a drop of 0.1 per cent, mainly as a result of lower prices for motor cars. Seasonal price increases in garments caused the Clothing and Footwear Index to go up by 0.9 per cent. The Health Index increased by 0.2 per cent, mainly on account of higher prices for pharmaceutical products.

An upward movement in the prices of certain household textiles caused the Furniture, Household Equipment and Routine Maintenance of the House Index to go up by 0.1 per cent. A similar increase was registered in the Restaurants and Hotels Index, mainly due to seasonal price rises in accommodation services.    –more