Consumer price indices - inflation - June 2013

Consumer prices in June increased by 0.4% compared with May. This rise came primarily from price increases in 'food and non-alcoholic beverages'. The year-on-year growth of consumer prices accelerated to 1.6% in June from 1.3% in May.

The month-on-month increase in consumer prices came primarily from the marked rise in prices of potatoes by 85.8% because market offer switched from old to new potatoes. Prices of poultry went up by 1.9%, milk by 3.4%, yoghurts by 2.8%, butter by 1.8%, fruit by 1.1%, chocolate a chocolate products by 3.2%. In 'recreation and culture', seasonal prices of package holidays were higher by 4.6%. In 'transport', prices of automotive fuel rose by 1.4%.

A contrary effect on the consumer price level owed mainly to a decrease in prices of telephone and telefax services in 'communication' (-2.6%). In food, prices of vegetables cultivated for their fruit went primarily down by 16.8%, eggs by 5.6%, bread by 1.1%, flour by 1.8%, vegetable and other fats by 1.1%.

Prices of goods in total rose by 0.7% and prices of services remained unchanged.

In terms of the year-on-year comparison, in June, the increase in consumer prices was 1.6%, i.e. 0.3 percentage points up compared with May. An acceleration of the price rise came particularly from prices in 'food and non-alcoholic beverages', where prices of potatoes were higher by 91.8% (63.2% in May), fruit by 9.7% (6.7% in May), cooking oils by 4.8% (3.3% in May), butter by 11.2% (9.3% in May), milk by 8.4% (4.0% in May). In 'transport', the price drop slowed down due to automotive fuel prices, which were lower, y-o-y, by 0.8% in June (-4.3% in May).

A decisive upward effect on the y-o-y consumer price level, which was even strengthened in June, came from prices in 'food and non-alcoholic beverages'. The second highest upward effect owed to prices in 'housing, water, electricity, gas and other fuels', where the net actual rentals went up by 1.8%, water supply by 6.6%, sewerage collection by 7.1%, prices of electricity by 3.3%, heat and hot water by 4.6%. On the other hand, prices of natural gas were lower (-4.2%), y-o-y. In 'alcoholic beverages, tobacco', prices of beer went up by 5.4%, spirits by 3.6% and wine by 2.9%. In 'health', amounts paid by patients for drugs increased by 4.8%.

The reduction of the y-o-y price growth came from prices in 'communication' (-12.0%) and 'clothing and footwear' (-1.4%).

Prices of goods in total and prices of services rose (2.1% and 0.8%, respectively). The overall consumer price index excluding imputed rentals was 101.7%, year-on-year.

Inflation rate, i.e. the increase in the average consumer price index in the twelve months to June 2013 compared with the average CPI in the previous twelve months, stood at 2.3% in June.

According to preliminary data of Eurostat, the year-on-year increase in the average harmonized index of consumer prices (HICP) ¹⁾ in the EU27 member states was 1.6% in May, i.e. 0.2 percentage points up on April. The highest annual rate was observed in Romania (4.4%). On the other hand, a y-o-y price decrease occurred in Greece and in Latvia (-0.3% and -0.2%, respectively) in May. In Germany, the price rise accelerated to 1.6% in May (1.1% in April). In Slovakia, the price increase accelerated moderately to 1.8% in May (1.7% in April). According to preliminary calculations, the HICP in the Czech Republic in June 2013 rose by 0.5%, month-on-month, and by 1.6% (1.2% in May), year-on-year. The MUICP (Monetary Union Index of Consumer Prices) flash estimate for the Eurozone in June 2013 was 1.6%, y-o-y, as Eurostat announced (more information on the Eurostat’s web pages: HICP).

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¹⁾ So far, imputed rentals have been excluded from the HICP.


Analysis - Consumer price indices in Q2 2013

Notes:
Responsible manager of the CZSO: Jiri Mrazek, Department Director, email: jiri.mrazek@csu.gov.cz
Contact: Pavla Sediva, phone (+420) 274052138, email: pavla.sediva@csu.gov.cz
Method of data collection: Direct field survey of prices, centrally surveyed prices and reporting
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: 7101-13 Consumer Price Indices – Basic Breakdown (periodicity: monthly) and 7103-13 Consumer Price Indices – Detailed Breakdown (periodicity: annually)
Related documents available on the CZSO website: 710344-13 Consumer Price Indices – Detailed Breakdown (periodicity: monthly)
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Next News Release: 9 August 2013

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