Consumer Price Indices - Basic Information

The consumer price level dropped by -0.1% month-on-month in November. The month-on-month reduction was influenced primarily by a further decrease in prices of automotive fuel. In terms of year-on-year comparison, the growth of consumer prices accelerated to 1.5% in November from 1.3% in October.

The month-on-month decrease in the consumer price level by –0.1% was brought about primarily by a drop in prices in ‘transport‘, in which the cut in prices of automotive fuel continued for the third month and reached -2.7% in November. Prices of automotive fuel dropped in the previous three months by -10.4% in average. The price of petrol Natural 95 was in November by -3.66 CZK per 1 l lower than in August; it was the lowest since May 2005. The drop in prices in ‘recreation and culture’ was caused mainly by an off-season reduction in prices of domestic recreational stays and recreational stays abroad, which takes place every year. Similarly, in ‘health‘, prices of recreational stays at spas were lower due to the winter season, which is coming.

On the other hand, an increase in the consumer price level was influenced by a price rise primarily in ‘food and non-alcoholic beverages’ and ‘clothing and footwear‘. The drop, which lasted for 4 months, stopped in food prices due to the increase in prices in bread and cereals, potatoes and milk (1.0%, 8.0% and 2.1%, respectively). On the contrary, prices of coffee, tea and cocoa were lower, in particular. In ‘clothing and footwear‘, prices of winter goods rose mainly. The increase in prices in ‘alcoholic beverages, tobacco‘ was due to higher prices of spirit by 1.3% and in restaurants because of higher prices of meals and beer (0.2% and 1.5%, respectively).

In total, prices of goods remained unchanged and prices of services dropped by -0.2%.

In terms of year-on-year comparison, consumer prices growth amounted to 1.5% in November (0.2 percentage points up on October). Lower y-o-y value was for the last time in May 2005 (except October 2006). The acceleration of y-o-y growth was due to a slowdown of the drop in prices in ‘transport‘ and ‘furnishings, household equipment and routine maintenance of the house‘. In ‘transport‘, the decrease in prices of automotive fuel slowed down to -8.4% (from -10.8% in October). The reason was a less marked m-o-m decrease in prices in November 2006 (a drop by -2.7%) than in November 2005 (a reduction by -5.2%). In ‘furnishings, household equipment and routine maintenance of the house‘ the fall in prices of some equipment and appliances for household, kitchenware and detergents slowed down slightly.

The decisive influence on y-o-y rise in consumer prices belonged again to price changes in ‘housing, water, electricity, gas and other fuels’ (1.1 percentage points), in which prices of electricity were higher by 9.0%, heat by 8.0%, and solid fuel by 11.3%. The second biggest effect (coincidentally 0.2 percentage points) was due to the price development in ‘food and non-alcoholic beverages’ and ‘restaurants and hotels‘ (by 1.1% and 2.4%, respectively). In food, the biggest increase was recorded for potatoes (114.8%), rolls and baguettes (22.8%), bread (15.9%) and fresh vegetables (5.7%). In the public catering, prices of meals were higher by 2.3%, beer by 5.9%, table and mineral water by 4.2%. Prices of accommodation services went up by 3.4%. The highest rise was recorded for prices in ‘health‘, mainly due to an increase in amounts paid for drugs by patients and in prices of drugs and stays at spas.

A reduction in the price level was affected by the drop in prices in ‘transport‘ (-2.5%) and ‘clothing and footwear‘ (–5.4%). As for the former, besides automotive fuel, also prices of transport equipment were lower than in the previous year (-2.1%). The decrease in prices in ‘furnishings, household equipment and routine maintenance of the house‘ continued (–0.9%). Lower than in the previous year were also prices of flour, tropical fruit, poultry, chocolate and chocolate products, cocoa, coffee and tea.

In total, prices of goods went up (0.6%) as well as prices of services (2.9%).

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 2.6% in November, i.e. by 0.1 percentage point down on October 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 1.8% in October (by -0.1 percentage point down on September 2006). Prices grew most in Hungary (by 6.3%) and Latvia (by 5.6%), the least in Luxembourg (0.6%), in the Czech Republic (0.8%) and Finland (0.9%). Growth of prices in Slovakia decelerated to 3.1% (from 4.5% in September). In Germany, the price level increased by 1.1% (1.0% in September).

According to preliminary calculations, in the Czech Republic, the m-o-m decrease was -0.2% in November and the y-o-y HICP growth accelerated to 1.0% (from 0.8% in October). According to the flash estimate published by Eurostat, the y-o-y HICP increase for the Euro-zone was 1.8% in November 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 )