Consumer price indices - inflation - November 2008

The total consumer price level in November decreased compared with October by 0.5 %. A downward effect on the consumer price level, month-on-month, came mainly from the price fall in 'transport' and 'food and non-alcoholic beverages' and was the biggest since October 2006. The year-on-year consumer price growth markedly decelerated to 4.4 % in November (from 6.0 % in October).
The month-on-month consumer price decrease by 0.5% owed mainly to a five-month continuous price drop in automotive fuel, which reached a record-breaking 9.2 % in November. The price of petrol Natural 95 was the lowest since February 2007 and the price of diesel oil was the lowest in the last eighteen months. A drop in prices by 2.0 % was recorded for prices of passenger cars. In 'food and non-alcoholic beverages', lower were especially prices of vegetables grown for fruit by 10.6 %, other vegetables by 10.5 %, fruit by 1.1 %, rolls and baguettes by 5.2 %, flour by 2.8 %, milk by 1.5 %, cheese by 1.8 %, yoghurts by 2.4 % and vegetable fats by 2.7 %. In 'recreation and culture', the off-season prices of package holidays dropped by 3.3 %.

An upward effect on the consumer price level came from a price increase in tobacco products by 0.9 %. In 'housing, water, electricity, gas and other fuels', market rentals rose by 0.9 %. In 'clothing and footwear', the prices of clothing rose by 0.5 % and footwear by 0.1 %. In food, price increases were recorded especially for bread, poultry, butter, chocolate and chocolate products and tea (0.8 %, 1.2 %, 1.0 %, 3.7 % and 1.7 %, respectively).

Prices of goods in total decreased by 0.8 %, while prices of services dropped by 0.1 %.

In terms of the year-on-year comparison, in November, the increase in consumer prices was 4.4 %, i.e. 1.6 percentage point down on October. This is for now the lowest year-on-year price increase since October 2007. This development came primarily from prices in 'food and non-alcoholic beverages' and 'transport'. In 'food and non-alcoholic beverages', the price growth of bread slowed down to 2.1 % (17.8 % in October), flour to 18.2 % (26.5 % in October), vegetable fats to 18.5 % (33.6 % in October) due to a marked increase in prices at the end of 2007. Prices of rolls and baguettes were by 4.7 % lower in November, year-on-year (a growth by 25.3 % in October, year-on-year). Prices of milk dropped by 6.6 %, unsalted butter by 26.3 %, fruit by 10.4 %, vegetables including potatoes by 9.7 %. In 'transport', prices of automotive fuel dropped by 12.1 % (a decrease 0.4 % only in October) and prices of cars by 12.0 % (a drop by 10.2 % in October).

The year-on-year price growth came mainly from the development in 'housing, water, electricity, gas and other fuels', where prices of natural gas rose by 33.9 %, electricity by 9.5 %, heat and hot water by 12.5 % and solid fuels by 14.9 %. Net actual rentals rose by 15.1 %, of which for dwellings with regulated rentals by 22.2 %, while for dwellings with market rentals by 4.0 %. Prices of tobacco products increased by 14.3 %.

Compared with 2007, prices of clothing were lower by 0.5 %, devices and household appliances by 2.0 % and prices of audio-visual and photographic equipment and data-processing equipment by 12.5 %. In 'communications', prices of mobile phones decreased and so did prices of telephone and telefax services.

Prices of goods in total grew by 2.3 % and prices of services by 7.9 %. The overall consumer price index excluding imputed rentals was higher by 4.2 %, year-on-year.

Inflation rate, i.e. the increase in the average consumer price index in the twelve months to November 2008 compared with the average CPI in the previous twelve months, stood at 6.5 % in November (0.1 percentage point down compared with October 2008).

According to preliminary data of Eurostat, the year-on-year increase in the average harmonized index of consumer prices (HICP) in the EU 27 member states was 3.7 % in October (0.5 p.p. down on September). The highest annual rates were observed in Latvia (13.7 %), Bulgaria (11.2 %) and Lithuania (10.7 %). The lowest rates were recorded in the Netherlands, Germany and Portugal (2.5 % identically). The growth of consumer prices in Slovakia slowed down to 4.2 % in October (4.5 % in September).

According to preliminary calculations, the HICP in the Czech Republic in November 2008 decreased by 0.7 %, month-on-month, and decelerated to 4.1 % (5.7 % in October), year-on-year. The MUICP (Monetary Union Index of Consumer Prices) flash estimate for the Eurozone in November 2008 was 2.1 %, y-o-y, as Eurostat announced (more information at 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: 7101-08 Consumer Price Indices – Basic Information
7103-08 Consumer Price Indices – Detailed Information
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