Consumer price indices - inflation - September 2004
Year-on-year growth of consumer prices down on August
Publication Date: 08. 10. 2004
Product Code: r-7101-04
The month-on-month drop in consumer prices (-0.8%) was influenced mainly by the cut in prices in ‘recreation and culture’, where prices of recreational stays abroad decreased by 23.7% and domestic recreational stays by 6.4% after considerable seasonal increases in July and August. Prices in ‘food and non-alcoholic beverages’ kept on decreasing for the third month, the drop being -0.7% in September. The fall in prices of food was predominantly brought about by lower prices of fruit (-6.4%), fresh vegetables (-9.2%) and potatoes (-9.6%). On the other hand, prices of meat rose (+0.5%), of which prices of beef (+0.7%) and poultry (+0.9%), while prices of pork decreased (-0.3%) after increases in the preceding three months. Prices of bread, other bakery products, flour, milk and sugar rose moderately (increase lower than +1.0%). The drop in ‘transport’ was influenced by lower prices of cars (-2.0%), automotive fuel (-0.6%) and introduction of pupils’ tickets at reduced price in passenger transport by railway. On the other hand, as the new school year started, prices went up in ‘education’ (+4.5%) of which, for instance, fees in language teaching +8.1%, in kindergartens +4.1%, at primary schools +3.9% and tuition fees at private secondary schools +1.7%. In ‘restaurants and hotels’, prices of canteens in schools, accommodation services of boarding schools and of universities rose, too (+3.1%, +1.9% and +1.0%, respectively). In total, prices of goods and services decreased (-0.3% and –1.5%, respectively).
In terms of year-on-year comparison, consumer prices grew by 3.0%, which was by 0.4 percentage points down on August. The slowdown in growth was particularly recorded for prices in ‘food and non-alcoholic beverages’ due to a reduction in the increase in prices of meat by 2.4% (from 4.6% in August), fruit by 3.3% (from 7.4% in August) and a deeper y-o-y drop in prices of fresh vegetables by 13.1% (from 2.1% in August) and potatoes by 33.9% (from 22.6%). Higher were especially prices of sugar (+47.8%), bread and cereals (+13.8%), milk, cheese, eggs (+3.1% in average) and oils and fats (+4.2%). The slowdown in growth was recorded also for prices in ‘transport’, where prices of automotive fuel rose by 10.4% (by 12.8% in August), transport services by 2.8% (from 3.8% in August) and prices of cars dropped by 6.0%. The price growth acceleration occurred in prices in ‘education’ and in ‘restaurants and canteens’ primarily due to the increase in prices of school catering and accommodation. The highest increase was recorded for prices in ‘post and telecommunication’ due to the change in VAT rate in public telecommunication services. Similarly in ‘miscellaneous goods and services,’ prices of financial services were higher by 14.2% and prices of personal services by 17.0%. A decrease of prices was further recorded for clothing and footwear, household appliances, detergents, bicycles, 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 6.1%.
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 2.2% in September (2.0% in August).
According to preliminary data of Eurostat, the year-on-year increase in the average harmonized index of consumer prices HICP in the EU25 in August 2004 reached 2.3% (the same as in July). The highest growth of prices was observed in Latvia (+7.8%), the lowest growth was in Finland (+0.3%) and in Denmark (+0.9%). The biggest acceleration of the year-on-year increase was recorded for prices in Latvia (by 1.1 percentage points); on the other hand, the most noticeable slowdown in the y-o-y growth was observed in Slovakia (+7.0% in August from +8.3% in July). In the Czech Republic, the y-o-y HICP growth reached +2.8% in September (in August +3.2%). According to a flash estimate published by Eurostat, the y-o-y HICP increase for the Euro-zone in September 2004 was 2.2%.
Analysis - Development of consumer price indices in the third quarter of 2004
Note
Contact: Marie Huskova, phone (+420) 274054104, e-mail: marie.huskova@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: 7101-04 Consumer Price Indices – Basic Information7103-04 Consumer Price Indices – Detailed information
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