Consumer price indices - inflation - April 2010

The total consumer price level in April increased compared with March by 0.3 %. This development came primarily from a price rise in 'transport' and further in 'housing, water, electricity, gas and other fuels', 'clothing and footwear', 'alcoholic beverages, tobacco'. In April the growth of consumer prices accelerated to 1.1 %, y-o-y, (from 0.7 % in March).
The month-on-month consumer price growth by 0.3 % owed to another, this year already third marked price rise in automotive fuel, which reached 2.2 % in April. In total, prices of automotive fuel went up by 12.5 % since January 2010. In April, prices of petrol Natural 95 were the highest since July 2008, prices of diesel oil since October 2008. In 'housing, water, electricity, gas and other fuels', prices of natural gas increased by 3.3 %. Prices of clothing rose by 1.3 % and footwear by 1.8 % primarily due to new seasonal models. In 'alcoholic beverages, tobacco', in which prices of tobacco products went up by 1.0 %, a rise in the excise duty since January 2010 started to be shown with delay. The growth of food prices was influenced by higher prices of vegetables incl. potatoes by 4.0 %, of which prices of potatoes rose by 13.0 %. Prices of fresh and long-life milk were higher by 2.2 %, yoghurts by 2.0 % and chocolate and chocolate confectionery by 2.1 %.

A downward effect on the price level came from a price drop in 'recreation and culture', in which prices of audio-visual, photographic and information processing equipment went down by 1.1 % in particular. In food, prices of rolls and baguettes, pasta and non-alcoholic beverages were moderately lower than in the previous month (-3.1 %, -2.2 % and -1.3 %, respectively). In 'communications', prices of mobile phones went down by 2.0 %.

Prices of goods in total increased by 0.5 % and prices of services by 0.1 %.

In terms of the year-on-year comparison, in April 2010, the increase in consumer prices was 1.1 %, which is the acceleration by 0.4 percentage points. The acceleration in the price growth was shown primarily in 'housing, water, electricity, gas and other fuels', in which the y-o-y drop in prices of natural gas by 12.3 % in March slowed down to 6.5 % in April. The y-o-y decrease in prices in 'food and non-alcoholic beverages' slowed down as well. In 'health', the y-o-y price growth of pharmaceuticals was up by 9.7 % (from 2.9 % in March) due to their marked m-o-m drop in April 2009. The price growth of alcoholic beverages accelerated to 5.0 % (from 4.5 % in March) and tobacco products to 2.3 % (from 1.7 % in March).

A marked upward effect on the price level came, as before, from prices of automotive fuel, which were higher by 21.4 %. In 'housing, water, electricity, gas and other fuels', the net actual rentals went up by 10.1 %, of which for dwellings with regulated rentals rose by 18.6 % and for dwellings with market rentals dropped by 0.3%. Prices of water supply were higher by 3.8 % and sewerage collection by 4.9 %. Prices in 'restaurants and hotels' rose (2.6 % and 1.4 %, respectively). In food, prices of eggs, butter and potatoes were higher (7.9 %, 10.4 % and 12.2 %, respectively).

The reduction of price level came, as before, from prices in 'food and non-alcoholic beverages'. However, their reducing influence stopped to be dominant. Prices of bread were lower by 8.4 %, rolls and baguettes by 26.1 %, flour by 13.5 %, fruit by 4.6 %. Prices of clothing were lower by 2.7 % and footwear by 0.6 %. In 'housing, water, electricity, gas and other fuels', prices of electricity went down by 2.7 %. In 'recreation and culture', prices of audio-visual, photographic and information processing equipment were lower by 8.0 %. In 'communications', prices of mobile phones decreased and so did prices of telephone and telefax services (-14.7 % and -2.5 %, respectively).

Prices of goods in total increased by 0.3 % and prices of services by 2.1 %. The overall consumer price index excluding imputed rentals was 101.0 %, year-on-year.

Average inflation rate, i.e. the increase in the average consumer price index in the twelve months to April 2010 compared with the average CPI in the previous twelve months, stood at 0.6 % in April, which is 0.1 percentage point down compared with March 2010.

According to preliminary data of Eurostat, the year-on-year increase in the average harmonized index of consumer prices (HICP) in the EU27 member states was 1.9 % in March 2010 (0.4 percentage point up on February). The highest annual rates were observed in Hungary (5.7 %) and Romania (4.2 %). The number of EU member states, in which a year-on-year drop was recorded, fell from five to three. The biggest decrease was reported for Latvia (-4.0 %). In Germany, the y-o-y growth accelerated to 1.2 % (from 0.5 % in February). In Slovakia, the price rise was 0.3 % in March (a drop –0.2 % in February). According to preliminary calculations, the HICP in the Czech Republic in April increased by 0.4 %, month-on-month, and accelerated to 0.9 % (from 0.4 % in March), year-on-year. The MUICP (Monetary Union Index of Consumer Prices) flash estimate for the Eurozone in April 2010 was 1.5 %, y-o-y, as Eurostat announced (more information on the Eurostat's web pages: HICP) .

Starting from January 2010, the consumer price indices are calculated with revised weights. The weights are based on expenditure of households 2008. Calculated indices are chained on all levels of consumer basket with the base period 2005 = 100. Thus, a continuation of the existing index time series 2005 = 100, from which indices to other bases are derived (previous month = 100, corresponding period of last year = 100 and annual rolling average, i.e. average of index numbers over last 12 months to the average for previous 12 months) is ensured.

---

Note
Contact: Pavla Sediva, phone (+420) 274052138, e-mail: pavla.sediva@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 the reference month
Related publications: 7101-10 Consumer Price Indices – Basic Breakdown (periodicity: monthly)
7103-10 Consumer Price Indices – Detailed Breakdown (periodicity: annually)
Documents available on the CZSO website: 7103-10 Consumer Price Indices – Detailed Breakdown (periodicity: monthly)
( /2-ep-7 )