Consumer price indices - inflation - January 2004
Consumer prices 1.8% up m-o-m
Publication Date: 09. 02. 2004
Product Code: r-7101-04
The month-on-month rise (1.8%) in the price level was influenced by increases in VAT and excise duty, which according to CZSO calculations made up 0.5 percentage points of the total CPI increase; the growth of regulated prices (particularly electricity and natural gas) accounted for 0.4 percentage points and the rise in market prices for 0.9 percentage points. The impact of higher excise duty showed fully itself in automotive fuel only, while tobacco products and partly also spirits were sold from stock at unchanged prices. Market prices were predominantly influenced by higher prices of food and housing in cooperative dwellings and owner-occupied dwellings. Food prices have been rising since September 2003; they were particularly affected by higher prices of fruit (+7.0%), fresh vegetables (+10.7%), bread and cereals (+1.1%), milk (+1.3%), and cheese and sugar (+1.5% both). Following a decrease in December, meat prices went up (+0.1%), of which pork prices continued decreasing (-1.3%) and beef prices grew (+1.4%). The price increase in ‘housing, water, electricity, gas and other fuels’ was due to growth of regulated prices of electricity (+4.2%), natural gas (+3.0%), water supply (+4.1%), sewerage collection (+4.7%), and refuse collection (+5.5%). The costs of housing in cooperative dwellings and owner-occupied dwellings went up (+3.0% and +2.9%, respectively). In ‘transport’, the rise in prices of automotive fuel (+4.6%) is fully attributable to higher excise duty. Similarly, increasing prices of telecommunication services were mainly due to an increase in VAT from 5% to 22%. Particularly prices of domestic recreational stays in the mountains and prices of magazines rose in ‘recreation and culture’. Price increase in ‘miscellaneous goods and services’ was influenced by higher prices of personal care services, insurance, and management charges. In total, prices of goods and services went up (+1.1% and +2.9%, respectively).
In terms of year-on-year comparison, consumer prices rose by 2.3% (i.e. 1.3 percentage points more than in December 2003). Acceleration of the y-o-y growth was recorded mainly for public telecommunication services, affected by higher VAT rates, and for prices in ‘housing, water electricity, gas and other fuels’, due to higher regulated prices of electricity (+3.5%), natural gas (+7.9%), water supply (+4.4%), sewerage collection (+6.4%), and refuse collection (+6.7%). Food prices saw further acceleration of their y-o-y increase. Compared with January 2003, particularly prices of bread (+7.8%), rolls and bagels (+31.3%), flour (+9.8%), pork (+4.2%), poultry (+9.0%), eggs (+35.7%), butter (+12.0%), potatoes (+70.7%), and fresh vegetables (+14.9%) grew. A change in the trend was recorded for ‘transport’ where prices were up 1.1% (as against a drop of 0.5% in December), especially due to higher prices of automotive fuel by 0.9% (a fall of 2.0% in December). Prices of transport services were up 4.0%. Prices of clothing and footwear, domestic appliances, mobile phones, equipment for the reception, recording and reproduction of sound and pictures continued decreasing y-o-y. In total, prices of goods rose by 1.3% and prices of services grew by 4.0%.
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 0.3%.
According to preliminary data, the average harmonized index of consumer prices (HICP) in the EU Member States in December 2003 reached 1.8% year-on-year, which was 0.2 percentage points down on November. Most of the EU Member States observed a slowdown (by 0.1 to 0.2 percentage points); the highest slowdown was reported for Ireland (by 0.4 percentage points). Similar development was seen in most of the Acceding Countries except Poland and the Czech Republic. The y-o-y increase in HICP rose to 1.0% in the Czech Republic (from 0.9% in November). According to a flash estimate, the y-o-y HICP for the Euro-zone in January 2004 was 2.0%.
Note
Contact: Marie Huskova, phone (+420) 266107779, 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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