Consumer Price Indices - Basic Information

The consumer price level rose by 1.0% month-on-month in January. In the month-on-month increase in consumer prices, administratively influenced prices increased by 3.8% and market prices by 0.4%. In terms of year-on-year comparison, the rise in consumer prices slowed to 1.3% in January (from 1.7% in December 2006).

The month-on-month increase in regulated prices (by 3.8%) was brought about mainly by prices in ‘housing, water, electricity, gas and other fuels‘, in which prices of electricity rose by 7.9%, net actual rentals by 4.5%, water supply by 6.6% and sewerage collection by 5.5%. Prices of tobacco products increased by 2.5% due to an excise duty growth in April 2006. In ‘recreation and culture‘, the television licence fee rose by 20.0%. Prices of social care increased by 2.8% as a result of changes in the law on provision of social services. The opposite influence on the price development was due to a decrease in prices of natural gas by -4.2%. The month-on-month increase in consumer prices was affected by regulated prices by 0.6 percentage points.

The growth in a market price level was mainly affected by the increase in ‘food and non-alcoholic beverages‘, which was brought about mainly by higher prices of vegetables by 11.3% and non-alcoholic beverages by 2.8%. Prices of alcoholic beverages went up by 0.9%. 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 0.9%. In ‘restaurants and hotels‘, prices of meals in canteens increased by 1.5% and prices of accommodation services by 0.9%. The decrease in the market 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 continued (–2.1% in January) and prices of new and used cars went down slightly. The month-on-month increase in consumer prices was affected by market prices by 0.4 percentage points.

In total, prices of goods rose by 0.8% and prices of services by 1.4%.

In terms of year-on-year comparison, the increase in consumer prices amounted to 1.3% in January 2007, which is by –0.4 percentage points less than in December 2006. The slowdown in the y-o-y growth of prices was mainly influenced by a slowdown in rise in prices of housing to 2.2% (from 3.9% in December). The reason was a different m-o-m development in prices of housing in January 2006 (increase by 3.7%) and January 2007 (growth by 2.0%). Decrease of y-o-y growth was also in ‘communications‘ and ‘health‘.

The biggest influence (by 0.6 percentage points) on the y-o-y growth of consumer prices belonged (despite the slowdown in the y-o-y growth) to the prices of ‘housing, water, electricity, gas and other fuels‘, in which the prices of net actual rentals increased by 4.6%, water supply by 6.4%, sewerage collection by 6.0%, electricity by 7.9%, and solid fuels by 15.8%. The second biggest influence on the price level growth was made (by 0.4 percentage points) by the prices in ‘food and non-alcoholic beverages‘. As for food, prices of potatoes were higher by 123.3%, vegetables grown for fruit and other vegetables by 17.8% and 6.4%, respectively, and bread and cereals by 11.3%.

On the other hand, a fall of price level was brought about by price decline in ‘clothing and footwear‘. In ‘transport‘, prices of automotive fuels were lower by –3.5% and passenger cars by –2.3%. Prices of household appliances, audiovisual electronics, photographic and cinematographic equipment and optical instruments and personal computers decreased, too.

In total, prices of goods went up (0.3%) as well as prices of services (3.1%).

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 2.4% in January, i.e. by -0.1 percentage point down on December 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 2.1% in December as well as in November. Prices grew most in Latvia (6.8%) and Hungary (6.6%), the least in Malta (0.8%) and Finland (1.2%). Growth of prices in Slovakia reached 3.7% as well as in November. In Germany the rise in prices slowed down to 1.4% (from 1.5% in November).

According to preliminary calculations, in the Czech Republic, the m-o-m HICP increased by 1.0% in January and y-o-y growth slowed down to 1.4% (from 1.5% in December). According to the flash estimate published by Eurostat, the y-o-y HICP increase for the Euro-zone was 1.9% in January 2007.