Consumer Price Indices - Basic Information

Commentary

Contents

The month-on-month drop in consumer prices (by -0.3 %) was influenced mainly by a decrease in prices in ‘recreation and culture’, in which prices of recreational stays abroad fell by -22.7 % and domestic recreational stays by – 5.8 % in September after considerable seasonal increases in July and August. Prices in ‘food and non-alcoholic beverages’ kept on decreasing for the third month, although the drop gradually diminished being –0.2 % in September. Especially prices of fresh vegetables were lower by –6.2 %, potatoes –3.8 %, fruit of moderate climatic zone –5.8 %, sugar –2.1 %. On the other hand, prices of tropical fruit rose by +9.0 % and prices of eggs +6.7 %. The drop in prices in ‘communications’ was brought about by a temporary drop in the fee for installation of residential telephone lines.

The increase in the consumer price level was influenced by the rise in prices in ‘transport‘ due to higher prices of automotive fuel by +11.6 %. As the new school year started, prices went up in ‘education’ by +3.4 % of which, for instance, fees for foreign language teaching +4.9 %, fees in after-school care centres +13.9 %, in kindergartens +4.4 %, at private primary schools +3.1 % and tuition fees at private secondary schools +2.2 %. In ‘restaurants and hotels’, prices in canteens at schools and at kindergartens went up (by +1.3 % and +1.8 %, respectively). Prices of accommodation services at boarding schools and universities rose markedly (by +54.7 %).

In total, prices of goods rose (+0.6 %) and prices of services dropped (-1.4 %).

In terms of year-on-year comparison, consumer prices were up by +2.2 %, which was by +0.5 percentage points up on August. The acceleration in the growth of prices was caused by an increase in prices in ‘transport‘, in which prices of automotive fuel went up by +21.6 % (from +8.3 % in August); it is the highest y-o-y growth of as follows prices in the last five successive years.

Prices in ‘food and non-alcoholic beverages’ remained lower in September 2005 in comparison with September 2004, but their reducing effect diminished (–0.8 % in August and –0.3 % in September). Lower than in September 2004 were primarily prices of flour (-19.1 %), eggs (-7.1 %), potatoes (-7.8 %), sugar (-14.2 %) and pork (-4.8 %). Higher than in September 2004 were especially prices of fresh vegetables (+12.0 %), beef (+3.6 %) and cheese (+4.1 %). The slowdown of y-o-y growth of prices in ‘education’ was caused by a lower m-o-m increase in prices in September 2005 (by +3.4 %) than in September 2004 (by +4.5 %).

The biggest influence (one half) on y-o-y growth of consumer prices (due to their weight in the consumer basket) was recorded for ‘housing, water, electricity, gas and other fuels‘, in which prices of gas increased by +14.7 %, electricity +4.9 %, water supply +4.5 %, sewerage collection +5.8 % and refuse collection +9.9 %. The second biggest influence (one third) on the increase in the price level was recorded for prices in ‘transport‘. On the other hand, a decrease of the price level was affected by prices in ‘clothing and footwear’, ‘food and non-alcoholic beverages’ and ‘furnishings, household equipment and routine maintenance of the house’.

In total, prices of goods went up (+1.4 %) and prices of services grew (+3.6 %).

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, stood at 2.0 % in September, i.e. by 0.1 percentage points down on August.

According to preliminary data of Eurostat, the year-on-year increase in the average harmonized index of consumer prices (HICP) in the EU25 was +2.2 % in August 2005. Prices grew most in Latvia (+6.3 %) and the least in Sweden and Finland (+1.0 %). Growth of prices in Slovakia accelerated moderately from +2.0 % in July to +2.1 % in August. Prices in Germany rose by +1.9 % in August (the same as in July). In the Czech Republic, the y-o-y HICP growth reached +2.0 % in September. According to the flash estimate published by Eurostat, the y-o-y HICP increase for the Euro-zone was 2.5 % in September 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 )