Consumer Price Indices - Basic Information

The consumer price level dropped by -0.7% month-on-month in September. Similarly as in the preceding years, the month-on-month reduction was influenced by a seasonal decrease in prices of domestic recreational stays and recreational stays abroad. In terms of year-on-year comparison, the growth of consumer prices slowed down due to the drop in prices of automotive fuel to 2.7% in September from 3.1% in August.

The month-on-month decrease in the consumer price level was brought about mainly by a decrease in prices in ‘recreation and culture’, in which, like in the previous years, prices of package holidays (both domestic and abroad) fell by -18.2% in average. In ‘transport‘, prices of automotive fuel went down by -2.6% after a rise, which lasted for five successive months. The drop in food prices was brought about by lower prices of fresh vegetables and moderate zone fruit (-11.3% and –9.2%, respectively).

The increase in the consumer price level was influenced by the rise in housing, in which prices of solid fuel went up by 8.4%. In ‘clothing and footwear’, the increase in prices was due to a sale of the new kinds of autumn and winter clothing and shoes. As the new school year started, prices went up in ‘education’ by 2.6% of which, for instance, fees in kindergartens by 4.8%, fees in after-school care centres by 3.2%, for foreign language teaching by 2.9%, at private primary schools by 1.9% and tuition fees at private secondary schools by 1.3%. Similarly, in ‘restaurants and hotels’, prices in canteens at schools went up by 0.7%. Prices of accommodation services at universities and boarding schools were higher (3.2% and 1.4%, respectively). In food, prices of potatoes and tropical fruit increased in particular (10.9% and 3.4%, respectively). Prices of bread and cereals increased further by 0.5%, of which rolls and baguettes by 3.1%, while prices of bread were lower by -1.5%.

In total, prices of goods dropped by -0.1% and prices of services by -1.5%.

In terms of year-on-year comparison, consumer prices amounted to 2.7% in September (0.4 percentage points down on August). The drop was influenced primarily by prices in ‘transport‘, which (from the rise by 2.6% in August) were by –2.0% lower in September than in the previous year. This shift was brought about by prices of automotive fuel, which fell from the y-o-y increase by 6.0% in August to the decrease by –7.5% in September due to the different m-o-m development in September 2006 (a drop –2.6%) and September 2005 (the rise 11.6%). It is the first y-o-y decrease in prices of automotive fuel since March 2005. On the other hand, the y-o-y growth of prices of package holidays remained almost unchanged and amounted to 1.3% in September (1.0% in August) despite their strong m-o-m price drop (which was almost the same as in the previous year).

The decisive influence (1.9 percentage points) on y-o-y rise in consumer prices belonged again to price changes in ‘housing, water, electricity, gas and other fuels’, in which prices of natural gas were higher by 24.6%, electricity by 9.0%, heat by 11.6%, solid fuel by 11.8%. The second biggest effect was due to the price development in ‘food and non-alcoholic beverages’ (0.5 percentage points). In food, the biggest increase was recorded for potatoes (93.1%), rolls and baguettes (33.7%), moderate zone fruit (16.1%), bread (16.0%) and fresh vegetables (14.6%).

A reduction in the price level was affected, like in the previous months, primarily by the drop in prices in ‘clothing and footwear‘ and in ‘furnishings, household equipment and routine maintenance of the house‘ and newly included ‘transport‘, in which except automotive fuel, prices of cars, motorcycles and bicycles were lower than in the previous year. Lower than in the previous year were predominantly prices of poultry, tropical fruit, chocolate and chocolate products, cocoa, coffee and tea.

In total, prices of goods went up (2.2%) as well as prices of services (3.5%).

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 2.8% in September, i.e. by 0.1 percentage point up on August 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 2.3% in August (by 0.1 percentage point down on July 2006). Prices grew most in Latvia (6.8%), the least in Finland (1.3%). Growth of prices in Slovakia amounted to 5.0% the same as in July. In Germany, the price growth slowed down to 1.8% (2.1% in July).

According to preliminary calculations, in the Czech Republic, the m-o-m decrease was -0.5% in September and the y-o-y HICP growth slowed down to 2.2% (from 2.6% in August). According to the flash estimate published by Eurostat, the y-o-y HICP increase for the Euro-zone was 1.8% in September 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 )