Slight drop in RPI due to summer sales
The Retail Price Index went down by 0.14 per cent last month, primarily reflecting a decrease of 9.57 per cent in the clothing and footwear index, mainly due to a seasonal drop in the price of garments.
The National Statistics Office said the household equipment and house maintenance cost index saw a downward movement of 0.98 per cent, mainly due to lower-priced household textiles.
A fall in the prices of travel-related accessories caused the other goods and services index to go down by 0.5 per cent.
A reduction in the prices of served beverages resulted in a drop of 0.09 per cent in the beverages and tobacco index.
Lower prices for medicines brought about a dip of 0.06 per cent in the personal health and care index.
A rise in the price of gas added 1.82 per cent to the water, electricity, gas and fuel index.
The food index went up by 1.03 per cent, mainly on account of higher prices of fruit.
Higher airfares caused the transport and communication index to increase by 0.95 per cent.
The recreation and culture index registered an increase of 0.56 per cent, mainly on account of higher prices for the hire of wedding reception venues.
An increase of 0.45 per cent was registered in the housing index, mainly due to higher prices for construction works.
In July, the 12-month moving average rate of inflation stood at 0.76 per cent, whereas the annual rate stood at 1.63 per cent.
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l fenech
Aug 23rd 2010, 15:59
You have it the wrong way round, it's the summer sales that have dropped not the RPI.
Paul Debono
Aug 23rd 2010, 11:29
Just received my Electricity bill - the price of electricity has increased from E3.63 to E5.60 over one year - an increase of 55% - how come this does not appear in the NSO reports?
Electricity is now a major component of household expenditure - so how can the RPI drop??
IBorg
Aug 23rd 2010, 14:07
While electricity is a major component of household expenditure it only makes 3.36% of the whole basket of goods. Its full effect is usually captured by increases in prices across other components due to the reliance on electricity.
The RPI went down only on a monthly basis (ie when compared to last June). The effect of the price increase would have already been captured in statistics for previous months. If you see the news release, on a yearly basis (july 2010/july2009) the increase in electricity and gas is about 31%.
Paul Debono
Aug 23rd 2010, 15:03
" it only makes 3.36% of the whole basket of goods "
This 3.36% seems to be far to low - so far my W&E bills takes roughly 9% of my gross pay. Seems an adjustment is needed for the basket of goods.
c camilleri
Aug 23rd 2010, 11:20
well yeah! as if we buy clothes every day. I would rather say the RPI has gone considerably up thanks to GonziPN and his "competent" cohorts.