Consumer Price Indices - Basic Information

Commentary

Contents

The month-on-month development of consumer prices (index 100.0 %) was influenced, like in the preceding years, by an increase in prices in ‘recreation and culture’ where prices of stays abroad rose (+8.2 %) due to the peak season. On the other hand, the drop in prices in ‘food and non-alcoholic beverages’, which was primarily caused by decreases in prices of fruit (-9.0 %), potatoes (-17.8 %), and fresh vegetables (-5.4 %), had a reducing effect. Prices of flour, rice, pork, oils and fats were lower too. Prices of beef, poultry, some of the milk products, coffee, cocoa and tea rose moderately. Further decreasing were prices of both clothing (-1.2 %) and footwear (-2.3 %) in the division ‘clothing and footwear’, mainly due to lower prices of summer articles.

In ‘transport‘, prices of automotive fuel rose by 0.4 % in August, following marked increases in the two preceding months.

In total, prices of goods dropped (-0.4 %) and prices of services rose (+0.5 %).

In terms of year-on-year comparison, consumer prices were up by +1.7 % (just like in July). In most of the divisions of the consumer basket, the y-o-y growth in August was very similar to that in July. The y-o-y growth was mainly fuelled by prices in ‘housing, water, electricity, gas and other fuels‘ (+1.1 percentage points) where price increases were reported for natural gas (+14.7 %), electricity (+4.9 %), water supply (+4.5 %), sewerage collection (+5.8 %) and refuse collection (+9.9 %). The second most important influence on the growth of the price level were prices in ‘communications’ as a result of higher prices of public telecommunication services (+17.1 %) and postal services (+15.5 %). The rise of prices in ‘transport‘ was affected by price increases of automotive fuel (+8.3 %) and transport services (+3.2 %). On the other hand, prices of cars, motorcycles and bicycles were lower y-o-y.

Of a downward influence on the total consumer price level were lower prices in ‘clothing and footwear’, ‘food and non-alcoholic beverages’ and ‘furnishings, household equipment and routine maintenance of the house’. The drop in prices of ‘food and non-alcoholic beverages’ was mainly caused by lower prices of fruit (-8.5 %), potatoes (-13.3 %), flour (-16.8 %), sugar (-11.5 %), eggs (-12.8 %) and pork (-5.2 %). Higher than in August 2004 were especially prices of fresh vegetables (+8.3 %), beef (+4.6 %) and cheese (+3.9 %). Prices of clothing and footwear dropped (-5.6 % and -8.2 %, respectively). In ‘furnishings, household equipment and routine maintenance of the house’, particularly prices of household appliances were lower y-o-y.

In total, prices of goods went up (+0.6%) and prices of services grew (+3.5%).

Inflation rate, i.e. increase in the average consumer price index for last 12 months related to the average CPI for the preceding 12 months, stood at 2.1% in August, i.e. by 0.1 percentage points down on July.

According to preliminary data of Eurostat, the year-on-year increase in the average harmonized index of consumer prices (HICP) in the EU25 was 2.1% in July 2005. Prices grew most in Latvia (+6.3%) and least in Sweden (+0.7%) and Finland (+0.9%). Growth of prices in Slovakia slowed down from 2.5% in June to 2.0% in July. Prices in Germany rose by 1.9% in July (+1.8% in June). In the Czech Republic, the y-o-y HICP growth reached 1.4 % in August (just like in July). According to the flash estimate published by Eurostat, the y-o-y HICP increase for the Euro-zone was 2.1 % in August 2005.

Note
Contact: Marie Huskova, phone (+420) 274054104, e-mail: huskova@gw.czso.cz
Data source: CZSO survey
End of data collection: 20th day of the reference month
End of data processing: 3rd day of the month that follows each reference month
The data are final.
Related publications: 7101-04 Consumer Price Indices – Basic Information; 7103-04 Consumer Price Indices – Detailed Information (Internet: https://csu.gov.cz )