Consumer Price Indices - Detailed Information

Commentary

Contents

The consumer price level in October increased compared with September by 0.6%. The fast growth of food prices and the price increase in 'housing, water, electricity, gas and other fuels' had an upward effect on the consumer price level. The year-on-year rise in consumer prices accelerated to 4.0% in October from 2.8% in September, which is the highest year-on-year price growth since January 2002.

The month-on-month increase in the consumer price level by 0.6% owed mainly to the price rise in ‘food and non-alcoholic beverages‘. Prices of milk increased by 14.8% (of which prices of long-life medium-fat milk by 20.5%), cheese by 4.1%, yoghurts by 4.6%. Prices of unsalted butter were higher by 15.0%. Prices of bread and cereals went up by 2.7%, of which prices of rolls and baguettes by 3.6%, lasting baked goods by 8.3%, flour by 11.9%. Prices of vegetables grown for fruit were higher by 32.1%. The price growth in 'housing, water, electricity, gas and other fuels' was influenced by the increase in prices of natural gas, solid fuels and heat (by 4.7%, 5.2% and 0.6%, respectively). In ‘clothing and footwear‘, prices of clothing rose by 1.0% and footwear by 2.1% particularly due to prices of seasonal winter clothing and shoes.

A downward effect on price development came from the price decrease in ‘recreation and culture‘, in which prices of package holidays were lower by 2.1%. In food, a price drop was reported primarily for bread (2.2%), citrus fruit (4.1%), apples (7.1%), potatoes (3.6%) and other vegetables (8.5%). Prices of automotive fuel dropped, on average, by 0.1%, however, prices of diesel oil rose by 1.9%.

Prices of goods in total increased by 1.0% and prices of services by 0.1%.

In terms of year-on-year comparison, in October 2007, the increase in consumer prices was 4.0%, i.e. 1.2 percentage point up compared to September 2007. This is the most rapid year-on-year growth of prices since January 2002. Prices in majority of the consumer basket divisions increased faster than in September 2007. The most rapid acceleration in the price growth was recorded for divisions ‘food and non-alcoholic beverages‘, 'housing, water, electricity, gas and other fuels' and ‘transport‘. In food, prices of long-life medium fat milk increased by 39.7% (from 15.9% in September), cheese by 14.7% (from 9.9% in September), butter by 35.3% (from 18.0% in September) and flour by 41.1% (from 28.6% in September). Prices of rolls and baguettes increased by 5.0% (from a 4.0% drop in September) and prices of lasting baked goods by 7.5% (from a 2.6% fall in September). The growth of fruit prices accelerated to 18.1% (from 13.1% in September). Prices of vegetables including potatoes were higher by 4.7% (a 5.2% drop in September). In housing, prices of natural gas rose by 3.6% (from a decrease by 6.5% in September) and prices of solid fuels by 18.2% (from an increase by 13.2% in September). In ‘transport‘, the price growth acceleration was influenced by the development of automotive fuel prices, which were higher by 3.9% in October, while in September they were 1.8% down, y-o-y.

The most significant growth was recorded for prices of ‘alcoholic beverages, tobacco‘ in which prices of tobacco products were higher by 27.7%. In housing, net actual rentals went up by 9.7%, in which for dwellings with regulated rentals by 17.0%, while for dwellings with market rentals dropped by 0.3%. Water supply was higher by 6.7%, sewerage collection by 5.5% and prices of electricity by 7.9%.

Prices of devices and household appliances were lower by 2.5%, transport vehicles by 1.1%, audio-visual and photographic equipment and data processing equipment by 11.2%.

Prices of goods in total grew by 4.6% and prices of services by 3.2%.

Inflation rate, i.e. the increase in the average consumer price index in the twelve months to October 2007 compared with the average CPI in the previous twelve months, stood at 2.2% in October (0.2 percentage point up on September).

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 2.3% in September (0.4 percentage point up on August). The highest annual rates were observed in Latvia (11.5%) and Bulgaria (11.0%), and the lowest rates in Malta (0.9%) and Denmark (1.2%). The growth of consumer prices in Slovakia accelerated to 1.7% in September (from 1.2% in August). In Germany, a 2.0% price growth recorded for the previous 6 months accelerated to 2.7% in September.

According to preliminary calculations, the HICP in the Czech Republic in October 2007 increased by 0.7%, month-on-month, and accelerated to 4.0% (from 2.8% in September 2007), year-on-year. The MUICP (Monetary Union Index of Consumer Prices) flash estimate for the Eurozone in October 2007 was 2.6%, y-o-y, as Eurostat announced.
In October 2007, in comparison to September 2007, consumer prices grew by 0.8% in households of pensioners and by 0.7% in households of employees. Both types of households recorded a higher consumer price index for ‘food and non-alcoholic beverages‘: households of pensioners by 2.2% and households of employees by 2.3%. The increase was affected particularly by higher prices of long-live fresh milk, eggs and egg products, wheat flour, and butter. Higher index was registered for ‘clothing and footwear‘ (1.2% for pensioners and 1.2% for employees as well) due to growth of prices of ready-made clothing and footwear. On the other hand, a lower index was recorded for ‘recreation and culture‘ (0.5% for pensioners, 0.3% for employees) primarily due to lower prices of domestic recreational stays and prices of information processing equipment. The consumer price index for ‘health‘ was down 0.6% for pensioners and 0.1% for employees, as a result of lower prices of stays at spas and lower amounts paid by patients for drugs with prescription.

In the capital city of Prague, the overall consumer price index (cost of living) grew by 0.5% month-on-month (0.6% in the whole Czech Republic). The consumer price index for ‘food and non-alcoholic beverages‘ increased by 2.2% (2.3% in the Czech Republic) due to higher prices of wheat flour, long-live fresh milk, eggs and egg products and butter. Prague registered a higher index for ‘clothing and footwear‘ by 1.7% (1.2% in the Czech Republic) particularly due to price increases in children's ready-made clothing and women's and children's footwear. The consumer price index for ‘housing, water, electricity, gas and other fuels’ grew by 0.4% (0.6% in the Czech Republic), affected mainly by higher prices of natural gas and solid fuels. On the other hand, a drop occurred in ‘recreation and culture‘ by 0.5% (0.3% in the Czech Republic) as a result of lower prices of domestic recreational stays, radio sets, audio equipment, TV sets, video-cassette players and recorders and information processing equipment. The consumer price index for ‘health‘ decreased by 0.2% (a drop by 0.3% was recorded for the whole Czech Republic), which was affected mainly by lower prices of stays at spas and lower amounts paid by patients for drugs with prescription.