Consumer Price Indices - Basic Information

The price level in ‘food and non-alcoholic beverages’ in total remained the same as in January. The highest increase was recorded for prices of fresh vegetables (+8.8%); prices of milk, cheese, oils and fats increased moderately. On the other hand, prices of fruit decreased (-3.0%); prices of bread and cereals, meat, fish and sugar were slightly lower.

In ‘communications’, an increase was recorded for postal fees (+15.5%), which was eliminated, however, by the drop in prices of public telecommunication services (-1.3%) due to a marked fall in the fee for installation of residential telephone lines.

In ‘clothing and footwear’, prices of winter clothing and footwear decreased again, in particular.

In ‘transport’, the fall in prices of automotive fuel continued, even though at a slower rate than in the previous months; it amounted to -0.7% in February. Prices of new and used cars dropped moderately.

In total, prices of goods decreased by -0.1%, while prices of services rose by +0.5%.

In terms of year-on-year comparison, consumer prices grew by +1.7% in February (the same as in January). However, the rate of year-on-year growth differed in most COICOP divisions of the consumer basket in both months.

The highest increase was recorded for ‘restaurants and hotels’, in which prices of meals in public catering went up by +7.5% and canteens +12.9% (primarily VAT influence since May 2004). In ‘health’, the rise in prices was due to the increase in prices of drugs (+10.2%). Prices of tobacco products rose (+8.9%), prices of alcoholic beverages remained unchanged in comparison with February 2004. In housing, the biggest increase was in prices of refuse collection that rose by +10.7%, natural gas (+6.0%), electricity (+2.3%) and heat and hot water (+3.4%). Prices of financial services increased by +11.5%.

Prices in ‘food and non-alcoholic beverages’ remained slightly lower than in February 2004. The drop in prices was brought about by the cut in prices of potatoes (-56.9%), fresh vegetables (-4.4%), bread and cereals (-1.1%), non-alcoholic beverages (-0.7%), in particular. The decrease in prices in ‘transport’ was influenced by lower prices of cars and automotive fuel (-7.2% and –0.5%, respectively). In ‘communications’, the drop in prices continued and was brought about particularly by the different VAT rate of public telecommunication services in February 2005 and in February 2004.

In total, prices of goods went up by +0.2% and prices of services by +4.2%.

Inflation rate, i.e. an increase in the average consumer price index for last 12 months related to the average CPI for the preceding 12 months, amounted to 2.7% in February.

According to preliminary data of Eurostat, the year-on-year increase in the average harmonized index of consumer prices (HICP) in the EU25 reached +2.0% in January 2005 (0.4 percentage points less than in December 2004). Most of the EU Member States observed a slowdown (from 0.1 to 2.7 percentage points). The highest y-o-y growth of prices was observed in Latvia (+6.7%) and on the other hand, the lowest in Finland (-0.2%). In Slovakia, the rise in prices slowed down to 3.1% in January (from 5.8% in December). In the Czech Republic, the y-o-y HICP growth reached +1.4% in February 2005 (+1.5% in January 2005). According to a flash estimate published by Eurostat, the y-o-y HICP increase for the Euro-zone in February 2005 was +2.0%.

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 )