Consumer price indices - inflation - August 2004
Price level unchanged month-on-month
Publication Date: 08. 09. 2004
Product Code: r-7101-04
The consumer price level in August remained unchanged month-on-month (previous year the drop -0.2%). Prices increased mainly in ‘recreation and culture’ and dropped primarily in ‘food and non-alcoholic beverages’, ‘clothing and footwear’ and ‘communications’. The rise in prices in ‘recreation and culture’ was influenced by the seasonal increase in prices of recreational stays abroad (the same as in the preceding years), which reached +7.5% (the previous year +6.5%). The fall in prices in ‘food and non-alcoholic beverages’ was brought about by the cut in prices of fruit (-6.7%), potatoes (-17.8%), and fresh vegetables (-11.6%), in particular. The increase in prices of pork and beef continued with markedly slower pace , which went up (+1.3% and +1.0%, respectively). On the other hand, the rise in prices of sugar accelerated (+18.4%). In ‘clothing and footwear’ the cut in prices of clothes and footwear continued mainly due to lower prices of the summer assortment. In the public telecommunication services, a charge for the setting of a residential telephone line was temporarily reduced. The slight drop in prices in ‘transport’ was caused by special discounts in car prices. Prices of automotive fuel increased (+0.4%) in August after a fall in July primarily due to the increase in prices of oil (+2.5%). In total, prices of goods decreased (-0.3%), while prices of services increased (+0.5%).
In terms of year-on-year comparison, consumer prices grew by 3.4%, which was the highest y-o-y growth since March 2002. The price growth acceleration occurred mainly in ‘food and non-alcoholic beverages’ due to the increase in prices of fruit by 7.4% (by 4.6% in July), sugar by 49.0% (by 25.1% in July) and a reduction in y-o-y drop in prices of fresh vegetables by 2.1% (by 10.8% in July). Prices of bread and cereals were higher (+13.6%), milk, cheese, eggs (+3.8% in average) and oils and fats (+6.0%). On the other hand, prices of potatoes were lower (-22.6%). The rise in prices in ‘alcoholic beverages, tobacco’ was caused by an increase in prices of tobacco products (+9.0%); prices of alcoholic beverages were higher by 0.8%. The highest increase was recorded for prices in ‘post and telecommunication’ due to the change in VAT rate in public telecommunication services. In public catering, prices of food in restaurants and canteens went up similarly (+7.9% and +9.3%, respectively). In ‘miscellaneous goods and services,’ prices of financial services were higher by 14.2% and prices of personal services by 17.3%. A decrease of prices was recorded for clothing and footwear, household appliances, detergents, bicycles, mobile phones, equipment for the reception, recording and reproduction of sound and pictures. In total, prices of goods went up by 1.8% and prices of services by 5.8%.
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, amounted to 2.0% in August (1.7% in July).
According to preliminary data of Eurostat, the year-on-year increase in the average harmonized index of consumer prices HICP in the EU25 in July 2004 reached 2.3%. The highest growth of prices was observed in Slovakia (+8.3%) and Hungary (+7.2%), the lowest growth was in Finland (+0.2%). The biggest acceleration of the year-on-year increase was recorded for prices in Lithuania (+1.8% in July from +1.0% in June) and in Latvia (+6.7% in July from +6.1% in June); on the other hand, the most noticeable slowdown in y-o-y growth was observed in Portugal and Estonia. In the Czech Republic, the y-o-y growth of the HICP reached +3.2% in August (in July +3.1%). According to a flash estimate published by Eurostat, the y-o-y increase of the HICP for the Euro-zone in August 2004 was 2.3%.
Note
Contact: Marie Huskova, phone (+420) 274054104, e-mail: huskova@gw.czso.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: 7101-04 Consumer Price Indices – Basic Information7103-04 Consumer Price Indices – Detailed information
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