Consumer price indices - inflation - August 2010

The total consumer price level in August decreased compared with July by 0.3 %. This development came primarily from a decrease in prices in 'food and non-alcoholic beverages' and also in 'transport'. The year-on-year rise in consumer prices amounted to 1.9 % in August (the same as in July).
The month-on-month consumer price drop by 0.3 % owed primarily to a price decrease in seasonal prices of vegetables grown for fruit by 26.6 % and stone fruit and berry plants by 13.0 %. In 'transport', prices of automotive fuel dropped by 1.9 % after a six-month growth and a slight decrease in July. Prices of footwear decreased by 1.5 % due to discounts primarily on summer goods.

A downward effect on the price level came from a seasonal price rise in package holidays by 2.5 %. In food, prices of meat increased particularly by 1.1 %, oils and fats by 1.2 %, sugar by 2.2 %, cocoa by 2.1 %.

Prices of goods in total decreased by 0.5 % and prices of services rose by 0.2 %.

In terms of the year-on-year comparison, in August, the increase in consumer prices was 1.9 %, i.e. the same as in July. A deceleration in y-o-y price growth was recorded for 'transport', in which prices of automotive fuel slowed down to 11.2 % (from 13.8 % in July). On the other hand, a higher y-o-y growth of prices in August compared to July was registered for 'food and non-alcoholic beverages'. Prices of fruit were higher by 15.5 % (from 8.6 % in July), oils and fats by 6.9 % (from 4.6 % in July) and milk, cheese and eggs by 5.2 % (from 4.6 % in July).

The highest upward effect on the price level came from prices in 'food and non-alcoholic beverages', 'housing, water, electricity, gas and other fuels' and 'alcoholic beverages, tobacco'. In 'housing, water electricity, gas and other fuels' the net actual rentals went up by 9.1 %, of which for dwellings with regulated rentals rose by 17.0 % and for dwellings with market rentals dropped by 0.4 %. Prices of natural gas were higher by 3.9 %, heat and hot water by 3.5 %, water supply by 3.8 %, sewerage collection by 4.9 %. Prices of alcoholic beverages rose by 5.4 %, identical to prices of tobacco products.

Prices of clothing and footwear were lower than in the previous year (-2.8 % and -1.1 %, respectively). In 'communications', prices of mobile phones decreased and so did prices of telephone and telefax services (-11.7 % and -1.2 %, respectively). In 'recreation and culture', prices of audio-visual, photographic and information processing equipment were lower by 8.2 %. In 'housing, water, electricity, gas and other fuels', prices of electricity went down by 2.7 %.

Prices of goods in total increased by 1.6 % and prices of services by 2.3 %. The overall consumer price index excluding imputed rentals was 101.9 %, year-on-year.

Average inflation rate, i.e. the increase in the average consumer price index in the twelve months to August 2010 compared with the average CPI in the previous twelve months, stood at 0.9 % in August, which is 0.1 percentage point up compared with July.

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 2.1 % in July 2010 (0.2 percentage points up on June). The highest annual rates were observed in Romania (7.1 %) and Greece (5.5 %). The year-on-year decrease continued in Ireland (-1.2 %) and Latvia (-0.7 %). In Germany, the y-o-y growth accelerated to 1.2 % (from 0.8 % in June). Similarly, in Slovakia the price rise accelerated to 1.0 % in July (from 0.7 % in June). According to preliminary calculations, the HICP in the Czech Republic in August decreased by 0.3 %, month-on-month, and rose by 1.5 % (1.6 % in July), year-on-year. The MUICP (Monetary Union Index of Consumer Prices) flash estimate for the Eurozone in August 2010 was 1.6 %, 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 in the year 2008. Calculated indices are chained on all levels of the 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.

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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)
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