Consumer Price Indices - Basic Information

The consumer price level in November increased compared with October by 0.9 %. The fast growth of food prices had a strong upward effect on the consumer price level. The year-on-year rise in consumer prices accelerated to 5.0 % in November from 4.0 % in October, which is the highest year-on-year price growth since August 2001.

The month-on-month increase in the consumer price level by 0.9 % owed mainly to the price rise in ‘food and non-alcoholic beverages‘, whose increase by 4.0 % became the highest month-on-month price jump since January 1993. The price increase was recorded for majority of kinds of food. The main upward pressure came from the rise in prices of bread and cereals by 11.3 %, of which prices of rolls and baguettes rose by 24.6 % and prices of bread by 16.2 %. Prices of eggs, milk, cheese and other dairy products increased by 12.6 %, 2.5 %, 7.9 % and 3.5 %, respectively. Prices of oils and fats rose by 9.4 %, of which edible oils by 17.5 %, vegetable fats by 9.7 % and butter by 6.0 %. Prices of vegetables grown for fruit were higher by 6.7 %. Prices of chocolate and chocolate-based products rose by 4.8 %, confectionery without chocolate by 3.2 % and confectionery products by 4.5 %. Prices of some ingredients, coffee, tea, cocoa and other non-alcoholic beverages went up, too. The price growth in 'transport' was influenced by the increase in prices of automotive fuel by 2.9 %, in which prices of diesel oil rose by 6.0 % and liquefied petroleum gas (LPG) by 6.2 %. Prices of oil hit record hight since the beginning of a statistical price monitoring (1969) and exceeded the price of petrol Natural 95. In 'alcoholic beverages, tobacco', prices of beer went up by 2.8 % and prices of tobacco products by 0.6 %. The same increase was recorded in prices of beer also in public catering (2.8 %).

A small downward contribution to the price development came from the price decrease in ‘recreation and culture‘, in which off-season prices of package holidays were lower by 3.5 %. In food, a price drop was reported primarily for pork (1.2 %), apples (1.1 %), citrus fruit (7.9 %), other fruit (6.8 %), potatoes (1.8 %) and sugar (1.5 %).

Prices of goods in total increased by 1.4 % and prices of services remained disaffected.

In terms of the year-on-year comparison, in November 2007, the increase in consumer prices was 5.0 %, i.e. 1.0 percentage point up compared to October 2007. The acceleration in the price growth came mainly from prices in the division ‘food and non-alcoholic beverages‘, which increased by 10.4 % (from 6.3 % in October). A double-digit year-on-year growth in this division was last recorded more than 11 years ago (in July 1996). Prices of bread and cereals rose by 18.0 % (from 7.0 % in October), of which prices of bread increased by 23.8 %, rolls and baguettes by 27.9 % and wheat flour by 56.7 %. Prices of eggs were higher by 27.1 %, long life semi-skimmed milk by 38.3 %, cheese by 23.4 %, unsalted butter by 46.6 % and edible oils by 17.5 %. A growth of fruit prices accelerated to 23.1 % in November (from 18.1 % in October). Prices of other kinds of food increased faster, too. In ‘transport‘, the price growth acceleration came from the development of automotive fuel prices, which were higher by 9.7 % in November (from 3.9 % in October).

The most significant growth in prices of ‘alcoholic beverages, tobacco‘ came from prices of tobacco products which were 28.5 % up. In housing, net actual rentals increased by 9.7 %, of which for dwellings with regulated rentals by 17.1 %, while for dwellings with market rentals a 0.1 % drop was recorded. Prices of water supply, sewerage collection and electricity were higher by 6.7 %, 5.5 % and 7.9 %, respectively.

Compared with 2006, prices of devices and household appliances were lower by 1.9 %, prices of transport vehicles by 0.8 % and prices of audio-visual and photographic equipment and data processing equipment by 11.9 %. In food, mainly prices of potatoes, pork and sugar were lower, year-on-year, (by 31.9 %, 3.4 % and 2.7 %, respectively).

Prices of goods in total grew by 6.1 % and prices of services by 3.4 %.

Inflation rate, i.e. the increase in the average consumer price index in the twelve months to November 2007 compared with the average CPI in the previous twelve months, stood at 2.5 % in November (0.3 percentage point up in October). A similar growth of average inflation was last recorded in October 2004.

According to preliminary data of Eurostat, the year-on-year increase in the average harmonized index of consumer prices (HICP) in the EU 27 member states was 2.7 % in October (0.4 percentage point up in September). The highest annual rates were observed in Latvia (13.2 %) and Bulgaria (10.6 %), and the lowest rates in Malta and in the Netherlands (both 1.6 %), Denmark and Finland (both 1.8 %). The growth of consumer prices in Slovakia accelerated to 2.4 % in October (from 1.7 % in September). In Germany, the price growth was the same as in September, i.e.2.7 %.
According to preliminary calculations, the HICP in the Czech Republic in November 2007 increased by 0.8 %, month-on-month, and accelerated to 5.1 % (from 4.0 % in October 2007), year-on-year. The MUICP (Monetary Union Index of Consumer Prices) flash estimate for the Eurozone in November 2007 was 3.0 %, y-o-y, as Eurostat announced.