Trends in telecommunications prices - March 2018



Summary

  • In March 2018, telecommunications prices1 did not undergo any alteration compared to the previous month (+0.11% in March 2017).

On a year-on-year basis, the variation in prices was +0.24%.

On average annual terms, prices increased by 1.89%, 0.69 p.p. over inflation (1.21%). The increase in prices reported was the 16th highest among the 43 products/services considered.

Since January 2014, telecommunications prices1 have been increasing at average annual rates above the rate of change reported in the CPI.

  • In March 2018, in average annual terms, Portugal reported the third highest increase in prices in the EU. On average, telecommunications prices1 in the EU fell by 0.8%.

Since March 2011, telecommunications prices1 have risen more in Portugal than in the EU.

1. Changes in telecommunications prices1 in March 2018

According to INE2, in March 2018, prices did not undergo any alteration compared to the previous month (+0.11% in March 2017)1. Compared with the corresponding month of the previous year, and the average in the last 12 months, telecommunications prices1 increased by 0.24% and by 1.89%, respectively.

Table 1 - Change in Consumer Price Index (CPI) and in telecommunications prices

 

 

March 2018

2017

Var. Year-on-year

Var. average 12 months

Var. previous month

Var. average 12 months 

CPI

0.69%

1.21%

1.86%

1.37%

Telecommunications1

0.24%

1.89%

0.00%

2.35%

Ranking in descending order (43 groups)

28

16

23

10

Unit: %
Source: INE
Note: The variation between the average change in the CPI over the previous 12 months and the telecommunications sub-index resulting from the table is different to that mentioned in the text due to rounding.

On a year-on-year basis, the variation in prices (+0.24%) was the 28th highest among the sectors of the Portuguese economy. The difference between the CPI was -0.45 p.p.

On average annual terms, the increase in prices reported (1.89%) was the 16th highest among 43 products/services considered.

Since January 2014, telecommunications prices1 have been increasing at average annual rates above the rate of change reported in the CPI. In March 2018, the difference between the two rates was reported at 0.69 percentage points (p.p.). the smallest variation since March 2014.

Graph 1 - Average 12-month change in CPI and telecommunications prices1

In March 2018, the difference between the two rates was reported at 0.69 percentage points (p.p.). the smallest variation since March 2014.

Unit: %
Source: INE

2. Changes in telecommunication prices1 in the EU3 in March 2018

According to EUROSTAT4, in March 2018, the increase in prices in average annual terms reported in Portugal was 2.7 percentage points above the EU average4, with Portugal being the EU country with the third highest increase in prices. The countries with larger increases than Portugal were Latvia and Spain.

On a year-on-year basis, the increase in telecommunications prices1 in Portugal was the 10th highest among the EU countries.4

Table 2 - Changes in telecommunications prices1: Portugal vs EU4

 

 

March 2018

2017

Variation Year-on-year

Variation average 12 months

Variation previous month

Variation average 12 months

EU3

-0.1%

-0.8%

-0.04%

-0.9%

Portugal

0.2%

1.9%

0.0%

2.4%

Deviation PT / EU3

0.4 p.p.

2.7 p.p.

0.04 p.p.

3.2 p.p.

Ranking in descending order (26 countries)

10

3

9

2

Unit: %, pp
Source: EUROSTAT
Note: Information not available for the United Kingdom. Ireland was also not included in the ranking due to a lack of available information before December 2016.

Since April 2011, telecommunications prices1 have risen more in Portugal than in the EU4 (in average annual terms).

Graph 2 - Average rate of change over previous 12 months - telecommunications prices: Portugal vs EU4

Since April 2011, telecommunications prices have risen more in Portugal than in the EU3 (in average annual terms).

Unit: %
Source: EUROSTAT
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 2015. There may be differences in the series due to rounding effects5.

Notes
nt_title
 
1 ''Telephone and telefax services'' sub-index of the Consumer Price Index (CPI) and of the Harmonized 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. Analysis of the prices presented in this report should be complemented by an examination of the characteristics of the offers; this information is available in the reports: "Electronic communications bundles", ''Fixed telephone service and nomadic VoIP'', ''Mobile services'', ''Internet access service'' and ''Subscription television service'', all available on ANACOM's website.
2 See “Consumer Price Index – March 2018” (INE, 2018), available at CPI annual rate of change increased to 0.7% - March 2018 https://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_destaques&DESTAQUESdest_boui=313637321&DESTAQUESmodo=2&xlang=en.
3 Information not available for the United Kingdom. Information available for Ireland as of December 2016.
4 See HICP- monthly data (EUROSTAT, 2018), available at HICP (2015 = 100) - monthly data (index) http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=prc_hicp_midx&lang=en. The methodology used is described at HICP methodology http://ec.europa.eu/eurostat/statistics-explained/index.php/HICP_methodology.
5 For further information, please go to New HICP reference year 2015 = 100 http://ec.europa.eu/eurostat/documents/272892/272971/HICP+reference+year+2015%3D100/.