Consumer price indices - inflation - June

The total consumer price level in June remained unchanged compared with May (index 100.0 % month-on-month). This development came mainly from an increase in prices of automotive fuel and a drop in food prices like in the previous month. The year-on-year consumer price growth decelerated further to 1.2 % in June (from 1.3 % in May).

The month-on-month consumer price development was influenced primarily by a price rise in 'transport', in which the price increase of automotive fuel continued for the fifth month to reach 5.8 % in June. Since October 2008 the highest average price of petrol Natural 95 was registered in June. In food, prices of potatoes increased by 28.3 % because market offer switched from old to new potatoes.

An opposite effect on the consumer price level came from a price decrease in majority of food, which continued for the fifth month. Prices of rolls and baguettes were lower by 9.4 %, flour by 10.6 %, other fruit by 26.0 % and vegetables grown for fruit by 26.1 %. In 'alcoholic beverages, tobacco', prices of alcoholic beverages decreased by 0.6 %. In 'miscellaneous goods and services', prices of electrical appliances for personal care fell due to discounts on sales by 2.5 %.

Prices of goods in total remained unchanged, while prices of services rose by 0.1 %.

In terms of the year-on-year comparison, in June, the increase in consumer prices was 1.2 %, i.e. 0.1 percentage point down on May. This is the lowest year-on-year growth since December 2003. The deceleration of y-o-y price growth came mainly from deeper price drop in 'food and non-alcoholic beverages', in which prices of bread and cereals were lower by 10.8 % (-9.4 % in May), oils and fats by 5.7 % (-4.5 % in May) and fruit by 12.7 % (-10.9 % in May). Prices of potatoes in spite of their high month-on-month increase (which was lower than in the previous year) turned from a growth by 5.6 % in May to a drop by 10.2 % in June. On the other hand, in 'transport', the price drop slowed down due to lower prices of automotive fuel by 14.8 % (-16.8 % in May).

Prices of clothing were lower than in the previous year (-3.2 %), footwear (-1.6 %), household appliances (-1.1 %), detergents (-10.8 %), cars (-9.8 %), audiovisual and photographic equipment and data-processing equipment (-10.6 %). Prices of mobile phones also decreased and so did prices of telephone and telefax services (-16.3 % and -4.0 %, respectively).

The most marked growth was reported for 'alcoholic beverages, tobacco' due to a 14.8 % price increase in tobacco products. The second biggest growth was registered in 'housing, water, electricity, gas and other fuels', in which prices of natural gas rose by 17.1 %, prices of electricity by 11.6 %, heat and hot water by 7.5 %, water supply by 9.2 % and sewerage collection by 9.0 %. Net actual rentals rose by 19.0 %, of which for dwellings with regulated rentals by 27.1 %, while for dwellings with market rentals by 4.5 %.

Prices of goods in total dropped by 0.2 % and prices of services were higher by 3.4 %. The overall consumer price index excluding imputed rentals was higher by 1.1 %, year-on-year.

Average inflation rate, i.e. the increase in the average consumer price index in the twelve months to June 2009 compared with the average CPI in the previous twelve months, stood at 3.7 % in June, which is 0.4 percentage point down compared with May 2009.

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 0.7 % in May (0.6 percentage point down on April). The highest annual rates were observed in Romania (5.9 %). In the six EU member states was recorded a year-on-year drop in May, in which the deepest in Ireland by 1.7 %. In Germany, the reported growth of prices was 0.0 % in May (0.8 % in April), in Slovakia the growth decelerated to 1.1 % (from 1.4 % in April). According to preliminary calculations, the rise in the HICP in the Czech Republic in June 2009 was 0.0 %, month-on-month, and decelerated to 0.8 % (0.9 % in May), year-on-year. The MUICP (Monetary Union Index of Consumer Prices) flash estimate for the Eurozone in June 2009 was -0.1 %, y-o-y, as Eurostat announced (more information on the Eurostat's web pages: HICP) .


Analysis - Consumer price indices in 2Q 2009

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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: 7101-09 Consumer Price Indices – Basic Breakdown (periodicity: monthly)
7103-09 Consumer Price Indices – Detailed Breakdown (periodicity: annually)
Documents available on the CZSO website: 7103-09 Consumer Price Indices – Detailed breakdown (periodicity: monthly)
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