Consumer Price Indices - Basic Information

The month-on-month increase in consumer prices was brought about mainly by prices in ‘housing, water, electricity, gas and other fuels’ (a share of 1.1 percentage points), in which prices of electricity rose by +9.0%, natural gas by +4.8%, heat and hot water by +6.3%, water supply by +3.4%, and sewerage collection by +5.0%. Rentals for housing in cooperative dwellings and imputed rentals of owner-occupiers increased as well. The growth of the price level was influenced further by the increase in prices in ‘food and non-alcoholic beverages’, ‘recreation and culture’ and ‘alcoholic beverages, tobacco’. The rise in prices in ‘food and non-alcoholic beverages’ was affected by the increase in prices of fresh vegetables, fruit of moderate climatic zone and potatoes (+15.9%, +5,6% and +5.9%, respectively). Prices of cheese, oils and fats, sugar and coffee were moderately higher. On the other hand, prices of other food (bread, flour, rice, meat, butter, tropical fruit) decreased slightly. In ‘recreation and culture’, seasonal prices of domestic recreational stays and recreational stays abroad in the mountains increased in particular. Prices of alcoholic beverages rose by +1.1% and prices of tobacco products by +0.9%. In ‘health’, primarily prices of medicaments and stays at spas increased (+0.8% and +4.8%, respectively). Prices of meals in canteens rose by +1.6% in ‘restaurants and hotels’. The increase was recorded for prices of financial services as well (+4.4%).

The decrease in the price level was influenced by a drop in prices of ‘clothing and footwear’, which was brought about primarily by the sale of winter kinds of cloth and footwear.

In ‘transport‘, the drop in prices of automotive fuel, which amounted to -2.0% in January, continued for the fourth successive month. On the other hand, prices of transport services rose by +1.9% due to higher prices in long distance bus transport and urban public transport.

In total, both prices of goods and services increased by +1.4%.

In terms of year-on-year comparison, the increase in consumer prices amounted to +2.9% in January 2006, which is by +0.7 percentage points more than in December 2005 and the biggest growth since November 2004. A dominant influence (1.9 percentage points) 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 +10.3%, water supply by +4.2%, sewerage collection by +6.1%, refuse collection by +4.4%. The second biggest share in growth of the price level was in prices in ‘transport‘ and ‘communications‘ (both 0.4% percentage points). In ‘transport‘, especially prices of automotive fuel increased by +12.5%. Transport services were higher by +4.7% due to the increase in prices in intercity and local transport. In ‘communications‘, the rise in prices of postal services continued (+15.5%) and prices of telecommunication services increased by +15.4% due to their growth in 2005.

On the other hand, however, the decrease in the price level was brought about by a drop in prices of ‘clothing and footwear’, ‘furnishings, household equipment and routine maintenance of the house’ and ‘food and non-alcoholic beverages’. Lower than last year were prices of personal transport equipment, equipment for the reception, recording and reproduction of pictures and sound, cinematographic equipment and personal computers.

In total, prices of goods went up (+2.2%) as well as prices of services (+3.9%).

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 January, i.e. by +0.1 percentage point up on December 2005.

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 December 2005 (-0.1 percentage point down on November). Prices grew most in Latvia (+7.1%), the least in Poland (+0.8%), Finland (+1.1%) and Sweden (+1.3%). Growth of prices in Slovakia accelerated to +3.9% in December (from +3.6% in November). On the other hand, in Germany, the rise in prices slowed down to +2.1% (from +2.3% in November). In the Czech Republic, the y-o-y HICP growth reached +2.4% in January (+1.9% in December). According to the flash estimate published by Eurostat, the y-o-y HICP increase for the Euro-zone was +2.4% in January 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 )