Consumer Price Indices - Basic Information

Commentary

Contents

The consumer price level rose by 0.3% month-on-month in June. In terms of year-on-year comparison, the growth of consumer prices slowed down to 2.8% in June from 3.1% in May.The month-on-month rise in the price level was influenced entirely by an increase in prices in ‘food and non-alcoholic beverages’, which were affected mainly by the rise in prices of bread and cereals by 5.2% (of which primarily bread by 7.4%, rolls and baguettes by 11.4%). The growth of food prices was influenced by a marked increase in prices of potatoes by 48.3%, which was due to the changeover of the offer on the market from old to new potatoes. Prices of tropical fruit rose by 2.6%. On the other hand, prices of moderate zone fruit dropped by –7.2% and prices of flour, poultry, eggs and milk were lower by more than –1.0%. In ‘health’, prices of stays at spas were higher by 1.5%. In ‘restaurants and hotels’, prices of non-alcoholic beverages and prices of beer went up (by 0.5% and 0.6%, respectively).

The decrease in prices continued in ‘clothing and footwear‘ and in ‘furnishings, household equipment and routine maintenance of the house‘. In alcoholic beverages, prices of bottled beer and wine were lower (by 0.9% and 0.5%, respectively). The growth of automotive fuel prices stopped in June after the marked rise in the previous two months. Prices of new cars dropped slightly.

In total, prices of goods rose by 0.4% and prices of services remained unchanged.

In terms of year-on-year comparison, consumer prices amounted to 2.8% in June (0.3 percentage points down on May). The slowdown of the growth of prices was recorded primarily in ‘communications‘ (from 17.2% in May to 1.4% in June), in which the high y-o-y increase until May 2006 was due to the marked price rise in public telecommunications services in June 2005. The year-on-year growth of prices slowed down also in ‘transport’ particularly due to prices of automotive fuel, which were higher by 8.3% (by 10.4% in May). On the other hand, prices in ‘food and non-alcoholic beverages’ were by 0.9% higher in June after the y-o-y drop that lasted for 6 months. It was due to the increase in prices of bread and cereals by 7.4%, of which bread by 10.0% (from 2.6% in May) and rolls and baguettes by 17.0% (from 5.7% in May). Prices of potatoes were higher by 41.7% (by 81.2% in May) due to lower month-on-month price jump in June 2006 than in June 2005.

A reduction in the price level was affected primarily by the drop in prices in ‘clothing and footwear‘ and in ‘furnishings, household equipment and routine maintenance of the house‘.

In total, prices of goods went up (2.5%) as well as prices of services (3.2%).

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 stood at 2.5% in June, i.e. by 0.1 percentage point up on May 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 2.4% in May (0.1 percentage points up on April). Prices grew mostly in Latvia (7.1%), the least in Poland (1.5%). Growth of prices in Slovakia speeded up to 4.8% in May (from 4.4% in April). In Germany, the rise in prices slowed down to 2.1% (from 2.3% in April).

In the Czech Republic, the m-o-m increase was 0.1% in June and the y-o-y HICP growth slowed down to 2.3% (from 2.8% in May). According to the flash estimate published by Eurostat, the y-o-y HICP increase for the Euro-zone was 2.5% in June 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 )