Consumer Price Indices - Basic Information

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The consumer price level in September dropped compared with August by 0.3%. The seasonal decrease in prices of recreational stays abroad and domestic stays had a downward effect on the consumer price level, like in the preceding years. The year-on-year growth of consumer prices accelerated to 2.8% in September from 2.4% in August.
The month-on-month decrease in the price level by 0.3% owed mainly to the price drop in ‘recreation and culture‘, in which prices of package holidays fell by 16.1%. In ‘transport‘, prices of automotive fuel, cars and bicycles went down (by 0.9%, 0.4% and 2.9%, respectively). In 'communications', prices of telecommunication services fell by 0.6% due to additional drop of roaming charges. In ‘health‘, a 1.7% drop was recorded mainly in amounts paid by patients for drugs with prescription. In food, the price drop was recorded especially for potatoes, other vegetables, apples, and sugar (by 12.1%, 8.0%, 11.5% and 2.7%, respectively).

An upward effect on price development came from the price increase in 'housing, water, electricity, gas and other fuels', in which net actual rentals went up by 1.3% for dwellings with regulated rentals, prices of solid fuels increased by 3.7% and prices of natural gas by 0.2%. In ‘clothing and footwear‘, prices of clothing rose by 0.8% and footwear by 1.6% due to a sale of the new kinds of autumn and winter clothing and shoes. The rise in prices of tobacco products slowed down to 0.6% in September. In food, the price growth was reported primarily for bread (2.3%), flour (8.5%), milk, cheese and eggs (1.9%), oils and fats (2.5%) and vegetables grown for fruit (7.2%). As the new school year started, prices went up in ‘education‘ by 1.8%, of which fees in kindergartens by 2.5%, in after-school care centres by 2.8%, for foreign language teaching by 2.2%, at private primary schools by 4.6% and tuition fees at private secondary schools by 1.7%. Similarly, in ‘restaurants and hotels‘, prices in canteens at schools went up (2.1%). Prices of accommodation services at universities and boarding schools were higher (0.9% and 3.1%, respectively).

Prices of goods in total increased by 0.1% and prices of services went down by 0.9%.

In terms of year-on-year comparison, in September 2007, the increase in consumer prices was 2.8%, i.e. 0.4 percentage point up compared to August 2007. An accelerated price growth was recorded for ‘housing, water, electricity, gas and other fuels', in which net actual rentals went up by 9.8%, of which for dwellings with regulated rentals by 17.0% (from 15.5% in August), while market rentals dropped by 0.2%. Prices of tobacco products rose by 27.4% (from 26.6% in August). A further acceleration of y-o-y growth was recorded for ‘food and non-alcoholic beverages‘. Prices of bread and cereals rose by 2.5% (from 2.2% in August), milk, cheese and eggs by 6.5% (from 4.2% in August), oils and fats by 4.8% (from 1.8% in August). In ‘clothing and footwear‘, the growth of footwear prices accelerated to 2.7% (from 2.0% in August).

A significant effect on price development came from decelerated decrease in prices for ‘recreation and culture‘, in which prices of holidays were higher by 0.2%, y-o-y, in spite of their distinct month-on-month drop (which was, however, smaller compared with September 2006). Similarly, in ‘transport‘, the y-o-y decrease in prices of automotive fuel slowed down to 1.8% from 3.5% in August. A reduction of the price level owed mainly to the price-cut in ‘communications‘, in which prices of telecommunication services were lower by 2.0%. Prices of pork, vegetables incl. potatoes and sugar were also lower compared with the previous year (by 4.5%, 5.2% and 4.0%, respectively).

Prices of goods in total grew by 2.7% and prices of services by 2.9%.

Inflation rate, i.e. the increase in the average consumer price index in the twelve months to September 2007 compared with the average CPI in the previous twelve months, stood at 2.0% in September (the same as in August).

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 1.9% in August (0.1 percentage point down on July). The highest annual rates were observed in Latvia (10.2%) and Bulgaria (9.3%), and the lowest rates in Malta (0.6%) and Denmark (0.9%). The growth of consumer prices in Slovakia amounted to 1.2% in August (the same as in July). The price level in Germany rose by 2.0% (the same as in the previous five months).

According to preliminary calculations, the HICP in the Czech Republic in September 2007 decreased by 0.3%, month-on-month, and accelerated to 2.8% (from 2.6% in August 2007), year-on-year. The MUICP (Monetary Union Index of Consumer Prices) flash estimate for the Eurozone in September 2007 was 2.1%, y-o-y, as Eurostat announced.