Consumer price indices - inflation - May

The total consumer price level in May remained unchanged compared with April (index 100.0 % month-on-month). This development came mainly from two opposing movements of prices in the consumer basket, i.e. an increase in prices of automotive fuel and a drop in food prices. The year-on-year consumer price growth decelerated further to 1.3 % in May (from 1.8 % in April).

The month-on-month consumer price development was influenced primarily by a price rise in 'transport', in which prices of automotive fuel went up by 2.3 %. Since October 2008 the highest average price of petrol Natural 95 was registered in May. In 'health', prices of pharmaceuticals increased by 0.6 % and prices of spa stays by 7.5 % due to the beginning of season. In food, prices of flour increased by 3.9 %, eggs by 4.6 % and potatoes by 4.6 %.

An opposite effect on the consumer price level came from a price decrease in 'food and non-alcoholic beverages', in which prices of bread dropped by 7.3 %, rolls and baguettes by 6.4 %, fruit by 4.7 % and vegetables grown for fruit by 10.6 %.

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

In terms of the year-on-year comparison, in May, the increase in consumer prices was 1.3 %, i.e. 0.5 percentage point down on April. This is the lowest year-on-year growth since January 2007. 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 9.4 % (6.0 % in April) and fruit by 10.9 % (5.6 % in April). Prices of vegetables turned from a growth by 5.0 % in April to a drop by 5.2 % in May. Similarly, in 'transport', the price drop was deeper due to lower prices of automotive fuel by 16.8 % (15.5 % in April).

The most marked growth was reported for 'alcoholic beverages, tobacco' due to a 15.0% 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 19.5 %, of which for dwellings with regulated rentals by 27.2 %, while for dwellings with market rentals by 5.5 %.

Lower than in the previous year (apart from prices in 'food and non-alcoholic beverages' and 'transport') were prices of clothing (-3.3 %), footwear (-1.1 %), household appliances (-1.2 %) and detergents (-9.7 %). A price cut (-10.2 %) continued in audio-visual and photographic equipment and data-processing equipment. Prices of mobile phones also decreased and so did prices of telephone and telefax services (-17.0 % and -3.9 %, respectively).

Prices of goods in total dropped by 0.1 % and prices of services were higher by 3.7 %. The overall consumer price index excluding imputed rentals was higher by 1.2 %, year-on-year.

Average inflation rate, i.e. the increase in the average consumer price index in the twelve months to May 2009 compared with the average CPI in the previous twelve months, stood at 4.1 % in April, which is 0.5 percentage point down compared with April 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 1.2 % in April (0.2 percentage point down on March). The highest annual rates were observed in Romania (6.5 %). In Ireland and Portugal prices fell by 0.7 and 0.6 %, respectively, compared to the previous year. In Germany, the growth of prices accelerated to 0.8 % in April (from 0.4 % in March), in Slovakia the growth decelerated to 1.4 % (from 1.8 % in March). According to preliminary calculations, the HICP in the Czech Republic in May 2009 increased by 0.1 %, month-on-month, and decelerated to 0.9 % (1.3 % in April), year-on-year. The MUICP (Monetary Union Index of Consumer Prices) flash estimate for the Eurozone in May 2009 was 0.0 %, y-o-y, as Eurostat announced (more information on the Eurostat's web pages: HICP) .

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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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