Consumer price indices - inflation - January 2005
Year-on-year growth of consumer prices slowed down markedly
Publication Date: 08. 02. 2005
Product Code: r-7101-05
The month-on-month increase in the price level (+0.7%) was influenced particularly by a rise in prices in ‘housing, water, electricity, gas and other fuels’ and ‘recreation and culture’ (the effects of which were +0.6 and +0.2 percentage points, respectively). The drop in prices in ‘clothing and footwear’ and ‘transport’ had reducing effect (-0.2 percentage points and -0.1 percentage point, respectively). The month-on-month increase in consumer prices was affected by regulated prices by +0.4 percentage points, by market prices by +0,3 percentage points.
In housing, prices of electricity rose by +4.9%, natural gas by +1.4%, heat energy by +2.6%, water supply by +3.6%, sewerage collection by +4.7% and refuse collection by +6.9%. In ‘recreation and culture’, especially seasonal prices of domestic recreational stays and recreational stays abroad in the mountains increased. The rise in prices in ‘food and non-alcoholic beverages’ was influenced by prices of fresh vegetables and non-alcoholic beverages (+6.3% and 0.9%, respectively). Prices of milk, cheese, eggs, oils and fats, fish were moderately higher. On the other hand, prices of other food (bread and cereals, meat, fruit, sugar) decreased slightly. Prices of alcoholic beverages increased by 1.5%, of which prices of beer by 2.4%. In ‘health’, prices of medical products rose by 6.5% due to higher fees paid by patients on some kinds of drugs. In ‘restaurants and hotels’, especially prices of meals in canteens and of accommodation services went up (+1.8% and +1.2%, respectively). An increase was recorded also for prices of financial services (+3.7%).
The drop in prices in ‘clothing and footwear’ was brought about by winter sale of clothing and footwear in particular. In ‘transport’, the decrease in prices of automotive fuel, which amounted to –4.3% in January, continued the third month. On the other hand, transport services increased by +1.4% due to higher prices of passenger transport by railway, by bus and of urban passenger transport. In ‘education’, the average school fees dropped in nursery schools, in which according to the education act a placement is provided free of charge in the highest class.
In total, prices of goods rose by +0.5% and prices of services by +1.2%.
In terms of year-on-year comparison, consumer prices grew by 1.7%, which was by 1.1 percentage point down on December 2004 and the lowest year-on-year growth since December 2003. The slowdown in the rise of prices occurred in most COICOP divisions of the consumer basket. The biggest fall was recorded for prices of telecommunication services, which decreased by 2.1% after the rise by 14.6% in December (VAT impact). Prices in ‘food and non-alcoholic beverages’, which were year-on-year lower in September 2003 last time, went down in comparison with January 2004. The drop in prices in ‘food and non-alcoholic beverages’ was influenced primarily by lower prices of fresh vegetables by 15.8%, potatoes by 56.0%, bread and cereals by 0.4% and by a reduction in the increase in other kinds of food. A change in trend was observed also in ‘transport’ due to the year-on-year drop in prices of automotive fuel by –0.4% (the rise by +8.9% in December). In ‘housing, water, electricity, gas and other fuels’, price growth of the following slowed down: natural gas, rentals for housing in cooperative dwellings, water supply and some products and services for the regularly undertaken maintenance of a dwelling.
In total, prices of goods went up by +0.2% and prices of services by +4.3%.
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 2.8% in January (the same as in December).
According to preliminary data of Eurostat, the year-on-year increase in the average harmonized index of consumer prices (HICP) in the EU25 reached 2.4% in December 2004 (0.2 percentage points more than in November). The highest growth of prices was observed in Latvia (+7.4%), the lowest in Finland (+0.1%). In Slovakia, prices increased by 5.8%. In the Czech Republic, the y-o-y HICP growth reached +1.5% in January 2005 (+2.5% in December 2004). According to a flash estimate published by Eurostat, the y-o-y HICP increase for the Euro-zone in January 2005 was +2.1 %.
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: 7101-05 Consumer Price Indices – Basic Information
7103-05 Consumer Price Indices – Detailed Information
( http://www.czso.cz/eng/csu.nsf/archivri?openform )
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