Consumer price indices - inflation - August 2012

Consumer prices in August decreased by 0.1% compared with July. This development came primarily from a price reduction in 'food and non-alcoholic beverages', 'clothing and footwear' and 'communications', which was eliminated partially due to the increase in prices in 'transport'. The rise in consumer prices accelerated to 3.3%, year-on-year (3.1% in July).

The month-on-month decrease in consumer prices in 'food and non-alcoholic beverages' came primarily from the drop in prices of vegetables by 9.0%, of which prices of potatoes fell by 28.4%. Fruit prices went down by 3.1% due to a decrease in prices of stone fruit and berries by 22.5%. Prices of rolls and baguettes, rice and eggs were lower (from -2.2% to -2.6%). In 'clothing and footwear', prices of clothing and footwear dropped (-0.4% and -2.5%, respectively). In 'communications', prices of mobile phones and prices of telephone and telefax services went down (-0.8% and -0.7%, respectively).

A contrary effect on the price level owed mainly to an increase in prices in 'transport', where prices of automotive fuel rose by 3.3% in August, month-on-month. It was the highest month-on-month growth of automotive fuel prices since December 2010 and the prices went back almost to the level in May after a three-month drop. In food, prices of flour rose by 7.3%, yoghurts by 3.2%, vegetable fats by 2.8%, tea by 2.9%.

Prices of goods in total dropped by 0.2% and prices of services remained unchanged.

In terms of the year-on-year comparison, in August, the increase in consumer prices was 3.3%, i.e. 0.2 percentage points up on July. An acceleration of the price growth came primarily from prices in 'transport' due to the rise in prices of automotive fuel by 6.5% (3.1% in July).

The biggest upward effect on the y-o-y consumer price level came, as before, from prices in 'housing, water, electricity, gas and other fuels' and prices in 'food and non-alcoholic beverages'. In 'housing, water, electricity, gas and other fuels', prices of natural gas were higher by 14.0%, electricity by 4.2%, water supply by 12.0%, sewerage collection by 10.5%, heat and hot water by 8.6%. The net actual rentals went up by 4.4%, of which for dwellings with regulated rentals rose by 10.6% and for dwellings with market rentals by 1.6%. In food, prices of meat increased by 7.9%, eggs by 62.3%, yoghurts by 13.1%, fruit by 13.6%, vegetables by 14.4%, non-alcoholic beverages by 7.6%.

The reduction of the y-o-y growth came mainly from prices in 'clothing and footwear', where prices of clothing and footwear went down (-5.0% and -2.5%, respectively). The decrease in prices in 'furnishings, household equipment and routine maintenance of the house' was influenced primarily by lower prices of household appliances (-5.8%), tolls and equipment for house and garden (-5.6%). In 'recreation and culture', a decrease in prices of audio-visual, photographic and information processing equipment continued (-7.2%). In 'communications', prices of mobile phones dropped (-7.1%).

Prices of goods in total and services rose (3.5% and 2.9%, respectively). The overall consumer price index excluding imputed rentals was 103.5%, year-on-year.

Inflation rate, i.e. the increase in the average consumer price index in the twelve months to August 2012 compared with the average CPI in the previous twelve months, stood at 3.1% in August.

According to preliminary data of Eurostat, the year-on-year increase in the average harmonized index of consumer prices (HICP) ¹⁾ in the EU27 member states was 2.5% in July, i.e. the same as in June. The highest annual rate was observed in Hungary (5.7%) and the lowest in Sweden (0.7%). In Germany, the price rise slowed down to 1.9% (2.0% in June). In Slovakia, the price increase accelerated to 3.8% (3.7% in June). According to preliminary calculations, the HICP in the Czech Republic in August 2012 remained unchanged, month-on-month, and rose by 3.4% (3.3% in July), year-on-year. The MUICP (Monetary Union Index of Consumer Prices) flash estimate for the Eurozone in August 2012 was 2.6%, y-o-y, as Eurostat announced (more information on the Eurostat’s web pages: HICP).
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¹⁾ So far, imputed rentals have been excluded from the HICP.

Notes:
Responsible manager of the CZSO: Jiri Mrazek, Department Director, email: jiri.mrazek@czso.cz
Contact: Pavla Sediva, phone (+420) 274052138, email: pavla.sediva@czso.cz
Method of data collection: Direct field survey of prices, centrally surveyed prices and reporting
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: 7101-12 Consumer Price Indices – Basic Breakdown (periodicity: monthly) and 7103-12 Consumer Price Indices – Detailed Breakdown (periodicity: annually)
Documents available on the CZSO website: 710344-12 Consumer Price Indices – Detailed Breakdown (periodicity: monthly) /csu/czso/2-ep-7
Next News Release: 9 October 2012
Text not edited for language.

Attachments

⇩ aisc091012.doc
Annexes:
⇩ Table 1 Consumer prices (indices, inflation rate)
⇩ Table 2 Consumer prices (decomposition of increase – month-on-month, core inflation)
⇩ Table 3 Consumer prices (decomposition of increases – month-on-month, year-on-year)
⇩ Table 4 Consumer prices (social groups of households - indices, inflation rate)
⇩ Table 5 Consumer prices (analytical table, effect of price changes of selected product groups)
⇩ Graph 1 Consumer prices (year-on-year changes, changes on base year)
⇩ Graph 2 HICP – monthly data (2005 = 100)