Consumer Price Indices - Basic Information

The consumer price level rose by 0.2% month-on-month in December. The month-on-month increase was influenced by a ise in prices in ‘food and non-alcoholic beverages’. In terms of year-on-year comparison, the growth of consumer prices accelerated to 1.7% in December from 1.5% in November 2006. Inflation rate in 2006 amounted to 2.5%.

The month-on-month increase in the consumer price level by 0.2% was brought about by a rise in prices of fruit, potatoes and fresh vegetables (14.8%, 12.1% and 4.8%, respectively). In ‘clothing and footwear‘, mainly prices of winter goods rose again. In recreation and culture’, prices of newspapers and magazines were higher by 1.3% and in restaurants, prices of meals and beer (0.2% and 0.7%, respectively). In ‘transport‘, prices of passenger transport by railway went up by 3.5%.

A reduction in the price level was affected by the drop in prices of automotive fuel, which continued and reached -1.2%. Prices of lcoholic beverages decreased by –1.1%.

In total, prices of goods rose by 0.2% and prices of services by 0.1%.

In terms of year-on-year comparison, consumer price growth amounted to 1.7% in December (0.2 percentage points up on ovember). The acceleration was due to a higher growth of prices in ‘food and non-alcoholic beverages’ and a slowdown of the drop in prices in ‘transport‘ and ‘clothing and footwear‘.

The decisive influence (1.1 percentage points) on the y-o-y rise in consumer prices belonged to prices in ‘housing, water, electricity, gas and other fuels‘. Prices of electricity went up by 9.0%, heat and hot water by 8.0%, solid fuel by 11.4%, water supply by 3.2% and sewerage collection by 5.5%. The second biggest share (0.3 percentage points) on the price level growth had the price development in ‘food and non-alcoholic beverages’ due to primarily higher prices of bread and cereals (11.5%) and potatoes (129.3%). The third in order of influence (0.2 percentage points) was the growth of prices in ‘restaurants and hotels‘, in which prices in estaurants rose by 2.9% and prices of accommodation services by 4.0%.

On the other hand, a reduction in the price level was affected by the drop in prices in ‘clothing and footwear‘ and in ‘furnishings, household equipment and routine maintenance of the house‘. In ‘transport‘, prices were lower y-o-y since September 2006 due to decreasing prices of automotive fuel, which dropped y-o-y by 3.4% in December. Lower than in December 2005 were also prices of ars, motorcycles and bicycles. Some kinds of food were cheaper, like for instance prices of coffee, tea, cocoa, chocolate and others.

In total, prices of goods went up (0.9%) as well as prices of services (3.1%).

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 2.5% in 2006, i.e. by 0.6 percentage points up on 2005. The price development in housing and ‘food and non-alcoholic beverages’ was influenced by particularly higher growth of prices in 2006. In housing, prices rose by 6.3% in 2006 (by 4.1% in 2005). Mainly prices of natural gas were higher by 19.1%, electricity by 9.0%, heat and hot water by 10.7%, water supply by 3.5% and sewerage collection by 5.6%. Prices in ‘food and non-alcoholic beverages’ were higher by 0.8% in average due to the acceleration of their growth in the second half of the year, while they dropped by –0.3% in 2005. Higher than in 2005 were in particular prices of bread and cereals, potatoes and fresh vegetables (7.0%, 67.9% and 10.9%, respectively).

The influence on the growth of the price level belonged also to higher prices in ‘transport‘, ‘communications‘ and ‘restaurants and hotels’. The price development in ‘transport‘ was affected by prices of automotive fuel, which rose by 3.1% in average. Y-o-y change fluctuated from 13.9% in February to –10.8% in October. In ‘communications‘, prices of public telecommunication services went up by 7.5%. In ‘restaurants and hotels‘, prices of accommodation services increased by +13.7% primarily as a consequence of higher prices of student hostel accommodation (change in a grant system).

A reduction in the price level was affected by the drop in prices in ‘clothing and footwear‘ and ‘furnishings, household equipment and routine maintenance of the house‘. Prices of some food (for instance prices of poultry, fruit, sugar, chocolate, cocoa, tea) were also lower than in 2005.

In total, prices of goods went up (2.0%) as well as prices of services (3.5%).

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 November (0.3 percentage points up on October). Prices grew most in Latvia (6.5%) and Hungary (6.4%), the least in the Czech Republic (1.0%), Poland, Finland and Cyprus (coincidentally 1.3%). Growth of prices in Slovakia accelerated to 3.7% (from 3.1% in October). In Germany, the price level increased by 1.5% (1.1% in October).

According to preliminary calculations, in the Czech Republic, the m-o-m decrease was 0.2% in December and the y-o-y HICP growth accelerated to 1.5% (from 1.0% in November). According to the flash estimate published by Eurostat, the y-o-y HICP increase for the Euro-zone was 1.9% in December 2006.

Note
Contact: Marie Huskova, phone (+420) 274054104, e-mail: marie.huskova@csu.gov.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: 7103-06 Consumer Price Indices – Detailed Information (Internet: https://csu.gov.cz )