TRENDS IN TELECOMMUNICATIONS PRICES JAN 16
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1 TRENDS IN TELECOMMUNICATIONS PRICES JAN 16
2 Trends in telecommunications prices 1 Summary In January 2016, telecommunications prices in 1 increased by 2.9 percent versus the previous month (2.4 percent in January 2015). This monthly increase in prices is the largest among all the different sectors of the Portuguese economy. In year-on-year terms, the increase in prices (4.93 percent) was the 5th highest among the sectors of the Portuguese economy. On average annual terms, prices increased by 4.23 percent, 3.64 percentage points over inflation (0.58 percent). This increase over CPI is the largest reported since at least The increase in prices was the 5th highest among the 43 products/services considered. Since January 2014, telecommunications prices have been increasing at average annual rates above the rate of change reported in CPI. On average annual terms, was the EU country with the highest increase in prices in January On average, telecommunications prices 1 in the EU have been falling (-0.07 percent). Since March 2011, telecommunications prices 1 have increased more in than in the EU. 1 Telephone, telegraph and telefax services" sub-index of the Consumer Price Index (CPI) and of the Harmonised Indices of Consumer Prices (HICP), which comprises voice, Internet and subscription TV (STV) services acquired on a stand-alone basis or as part of a bundle of services. 2/6
3 1. Trends in telecommunications prices January 2016 According to INE (Statistics ) 2, in January 2016, telecommunications prices in increased by 2.9 percent over the previous month (2.4 percent in January 2015). This monthly increase in prices is the largest among all the different sectors of the Portuguese economy. Versus January 2015, telecommunications prices 1 increased by 4.93 percent, while increasing by 4.23 percent on average over the last twelve months. Table 1 - Change in Consumer Price Index (CPI) and in telecommunications prices 1 Year-on-Year change January Average change 12 months Change versus prior month Average change 12 months CPI 0.78% 0.58% -1.04% 0.49%.. Telecommunications % 4.23% 2.90% 3.90% Ranking in descending order (43 groups) Source: INE (Statistics ) Unit: % On a year-on-year basis, the increase in prices (4.93 percent) was the 5th highest among the sectors of the Portuguese economy. The difference between this increase and the change in CPI was reported at 4.15 percentage points. On average terms, the annual increase in prices reported (4.23 percent) was the 5th highest among 43 products/service considered. This is the largest change reported since at least See "Consumer Price Index" January 2016 (INE, 2016), available at TAQUESmodo=2 3/6
4 2010M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M12 In recent years, telecommunications prices 1 have seen increases in both nominal and real terms at the beginning of each year as a result of price adjustments effected by providers. Since January 2014, telecommunications prices 1 have been increasing at average annual rates above the rate of change reported in CPI. In January 2016, the difference between the two rates was reported at 3.64 percentage points - the widest since at least Graph 1 - Monthly change in CPI and telecommunications prices 1 5% 4% 3% 2% 1% 0% -1% -2% CPI Telecommunications services Source: INE (Statistics ) Unit: % 2. Trends in telecommunications prices 1 in the EU 3 - January 2016 According to EUROSTAT 4, in January 2016, the increase in prices in average annual terms reported in was 4.3 percentage points above the EU average 3. On average annual terms, was the EU country with the highest increase in prices. In relation to the previous month, the variation in prices reported in (2.9 percent) was also the largest in the EU. 3 3 Information for Ireland, Malta, Netherlands, Sweden and United Kingdom not available. Information for Estonia available from In January 2016, information was not available for Bulgaria and Italy. Information available for Malta and Netherlands in January See HICP - monthly data (EUROSTAT, 2016), available at Methodology described at 4/6
5 Table 2 Change in telecommunications prices 1 : vs. EU 3 Year-on- Year change January Average change 12 months Change versus prior month Average change 12 months EU 3 0,36% -0,07% 0,17% -0,21% 4,92% 4,23% 2,90% 3,90% PT / EU difference 3 4,56 p.p. 4,30 p.p. 2,73 p.p. 4,11 p.p. Ranking in descending order (21 countries) Source: EUROSTAT Unit: %, p.p. Note: Information for Ireland, Malta, Sweden and United Kingdom not available. In January 2016, information was not available for Bulgaria and Italy. Information available for Malta and Netherlands in January In relation to January 2015, the increase in telecommunications prices 1 in is the 2nd largest in the EU 3. The largest increase was reported in Slovenia. Since March 2011, telecommunications prices 1 have risen more in than in the EU 3 (in terms of average annual change). 5/6
6 2010M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M12 Graph 2 Average rate of change over previous twelve months - telecommunications prices: vs EU 3 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% New series EU Source: EUROSTAT Unit: % Note: From the publication, by EUROSTAT, on 25 February 2016, of data for January 2016, the reference year of the HICP series was changed from 2005 to The series to October 2015 was calculated using 2005 as base period and the "European Union (28 countries)" indicator to calculate the values for the EU, while the series from November 2015 was calculated using 2015 as base period and using "European Union (EU6-1972, EU9-1980, EU , EU , EU , EU , EU , EU28)" as an indicator to calculate the values of the EU. There may be differences in the series due to rounding effects. For more information, see 6/6
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