Consumer Price Indices - Basic Information

The month-on-month increase in the price level was influenced (the same as in previous years) particularly by a seasonal rise in prices of winter domestic recreational stays and recreational stays abroad (+4.0 %). The moderate growth of prices in ‘housing, water, electricity, gas and other fuels’ was brought about by prices of heat and hot water by +0.8 %. In ‘miscellaneous goods and services’, fees in old people‘s homes increased (+4.2 %). Prices of meals in canteens and prices of meals and beverages in restaurants were higher in ‘restaurants and hotels’ (+0.5 % and +0.3 %, respectively). In ‘transport‘, prices of automotive fuel rose by +0.5 % in February, after a drop, which continued for four successive months.

However, a drop in prices in ‘communications’ due to a fall in the fee for installation of residential telephone lines (to 1 CZK) with an addition of free minutes for local and long-distance calls had the reverse effect on the development of consumer prices. In ‘clothing and footwear’, prices of winter clothing and footwear decreased again, in particular. The drop in food prices was primarily influenced by lower prices of fruit and of oils and fats (-3.6 % and -1.0 %, respectively). Prices of meat and bread and cereals were slightly lower. On the other hand, prices of fresh vegetables rose by +5.7 %.

In total, prices of goods remained unchanged and prices of services increased by +0.3 %.

In terms of year-on-year comparison, the increase in consumer prices amounted to +2.8 % in February 2006, which is by +0.1 percentage points less than in January 2006. It was brought about by a slowdown in the growth of prices in postal services from +15.5 % in January to zero in February. The reason was a one-time increase in prices in February 2005. In addition, a rise in prices of the public telecommunications services slowed down to +14.6 % from +15.4 % in January, which was due to discounts of the fees for installation of residential telephone lines (as stated hereinbefore).

A dominant influence on the y-o-y increase in consumer prices was recorded for prices in ‘housing, water, electricity, gas and other fuels‘, in which prices of natural gas increased by +25.4 %, electricity by +9.0 %, heat and hot water by +10.9 %. In ‘transport‘, a rise in prices of automotive fuel accelerated to +13.9 % (from +12.5 % in January). A growth of prices in ‘restaurants and hotels‘ was influenced by prices of accommodation services, which were higher by +19.5 %, particularly due to an increase in prices of accommodation at boarding schools and universities.

On the other hand, however, the decrease in the price level was brought about by a drop in prices of ‘clothing and footwear’ and ‘furnishings, household equipment and routine maintenance of the house’ similarly as in the previous months. Prices of clothing were lower by -5.6 % and footwear by -7.5 %. In ‘furnishings, household equipment and routine maintenance of the house’, prices of major household appliances and small household appliances went down (-4.5 % and – 5.1 %, respectively). Prices of the majority of food and non-alcoholic beverages were slightly lower than in the previous year, too.

In total, prices of goods went up (+2.3 %) as well as prices of services (+3.7 %).

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 +2.1 % in February, i.e. by +0.1 percentage point up on January 2006.
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 January 2006 (+0.1 percentage point up on December 2005). Prices grew most in Latvia (+7.6 %), the least in Poland (+0.9 %), and Sweden (+1.1 %). Growth of prices in Slovakia accelerated to +4.1 % in January (from +3.9 % in December). In Germany, the rise in prices amounted to +2.1 % (the same as in December 2005). In the Czech Republic, the m-o-m rise was zero in February and the y-o-y HICP growth reached +2.4 % (the same as in January). According to the flash estimate published by Eurostat, the y-o-y HICP increase for the Euro-zone was +2.3 % in February 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: 7101-04 Consumer Price Indices – Basic Information; 7103-04 Consumer Price Indices – Detailed Information (Internet: https://csu.gov.cz )