Consumer price indices - inflation - May 2004
Taxes and automotive fuel raised inflation
Publication Date: 08. 06. 2004
Product Code: r-7101-04
The month-on-month increase in the price level (+0.4%) was influenced mainly by the rise in VAT for catering services, household services and services of personal care, which saw the increase in prices (+4.2%, +4.9% and +6.5%, respectively). The VAT decrease had a counter impact, which affected the drop of prices particularly in housing and communications. In housing, prices of electricity, gas and telecommunications services went down (-2.4%, -2.5% and -1.2%, respectively). The increase in the price level was influenced also by the rise in prices of tobacco products (+4.3%), which only in May started to reflect the increase in excise duty in January. The rise in consumer prices was markedly influenced also by the m-o-m increase in prices of automotive fuel (+5.7%). Prices of petrol Natural 95 were the highest since September 2001 and prices of crude oil even since January 2001.
The decrease was recorded for food and non-alcoholic beverages, which went (-0.4%) down after a two-month moderate growth. The drop in food prices was influenced primarily by lower prices of meat (-0.5%), eggs (-4.6%), fruit of temperate climatic zone (-6.0%), fresh vegetables (-2.4%) and non-alcoholic beverages (-0.5%). On the other hand, prices of bread and cereals went up (+0.3%), of which prices of rice increased by 3.7%. Prices of subtropical fruit were also higher (+5.0%) (prices of bananas +11.3%), sugar and cocoa (+1.5%). In ‘health’, especially seasonal prices of stays at spa increased (+10.6%). In ‘recreation and culture’, prices of recreational and cultural services and domestic recreational stays went up (+3.3% and 4.6%, respectively). In total, prices of goods remained unchanged, while prices of services rose (+1.3%).
The m-o-m increase in price level was affected mainly by higher prices of catering services (+0.3 percentage points), automotive fuel (+0.2 percentage points), tobacco products (+0.1percentage point) and services of personal care (+0.1 percentage point). A fall in prices of electricity and natural gas (-0.2 percentage points) and food and non-alcohol beverages (-0.1 percentage point) had a reducing effect.
The full impact of the two-way changes of VAT calculated one-time on the increase in consumer prices in total in May was according to preliminary calculation of the CZSO 0.1 percentage point.
In terms of year-on-year comparison, the growth of consumer prices accelerated from 2.3% in April to 2.7% in May. The year-on-year acceleration occurred in most divisions of the consumer basket. Prices of public catering and accommodation, where prices of catering services were higher by 7.0% (by 2.7% in April), saw the biggest change. Marked acceleration of the y-o-y growth was also in ‘transport’ due to higher prices of automotive fuel (+11.0%). Y-o-y growth accelerated in alcoholic beverages and tobacco, too, due to an increase in prices of cigarettes (+5.4%). In ‘miscellaneous goods and services’, prices of personal services were higher by +18.2% (+11.3% in April).
On the other hand, a slowdown in y-o-y growth was recorded for prices of food and non-alcoholic beverages’ primarily due to the lower increase in prices of meat, oils and fats, eggs, potatoes. The y-o-y drop in prices of fruit of temperate climatic zone and fresh vegetables became deeper; it reached 9.2% and 12.3%, respectively, in May. Prices of bread and cereals were higher (+12.7%), milk, cheese, eggs (+5.5% in average) and potatoes (+56.6%) The lower increase (compared to April) was observed at prices of dwelling primarily due to prices of electricity and natural gas, which were as for electricity higher (+0.9%) in May (+3.5% in April) and as for natural gas the decrease became deeper (-5.8% in May in comparison with –3.5% in April). A moderately deeper decrease of prices was recorded for household appliances, mobile phones, equipment for the reception, recording and reproduction of sound and pictures. In total, prices of goods went up by 1.2% and prices of services by 5.4%.
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 1.2% in May (i.e. 0.2 percentage points more than in April).
According to preliminary data of Eurostat, the year-on-year increase in the average harmonized index of consumer prices (HICP) in the EU15 in April 2004 reached 1.8% (which was 0.3 percentage points up on March). The most rapid acceleration of the price increase (by 0.6 and 0.7 percentage points) was recorded for Belgium, Germany, Luxembourg and Sweden. The highest growth of prices was observed in Greece (+3.1%), while prices in Finland were 0.4% down on April 2003. In new Member States, a moderate acceleration of the price development was prevailing, which was the strongest in Poland (from 1.8% in March to 2.3% in April). There was a 2.0% y-o-y increase in the HICP in the Czech Republic (the same as in January and February). According to a flash estimate published by Eurostat, the y-o-y increase of the HICP for the Euro-zone in May 2004 was 2.5%.
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: 7101-04 Consumer Price Indices – Basic Information7103-04 Consumer Price Indices – Detailed information
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