Consumer price indices - inflation - January 2011

The total consumer price level in January increased compared with December by 0.7 %, which was the lowest month-on-month growth of prices in January since 2005. This development came primarily from a price rise in 'housing, water, electricity, gas and other fuels'. In January the increase in consumer prices amounted to 1.7 %, y-o-y, (2.3 % in December).

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The month-on-month consumer price growth by 0.7 % owed particularly to prices of electricity by 4.8 %, natural gas by 1.7 %, heat and hot water by 1.8 %, water supply by 6.1 % and sewerage collection by 5.6 %. The net actual rentals went up by 1.7 %, of which for dwellings with regulated rentals by 3.7 %, while for dwellings with market rentals by 0.9 %. In 'transport', the rise in prices of automotive fuels continued and amounted to 2.0 % in January. The average price of petrol Natural 95 reached 33.47 CZK per 1 litre and was the highest in its history. The growth of prices continued in 'food and non-alcoholic beverages', in which prices of oils and fats rose by 3.5 %, fruit by 2.5 %, milk by 3.7 %, chocolate and chocolate products by 2.8 %, confectionery without chocolate by 3.3 % and non-alcoholic beverages by 2.2 %. In 'alcoholic beverages, tobacco', prices of spirits went up by 4.9 %. Prices of postal services increased by 3.8 %. Prices of package holidays and newspapers and magazines were also higher (2.7 % and 1.1 %, respectively). In 'miscellaneous goods and services', prices of social protection rose by 3.1 %.

A contrary effect on the price level came from a consumer price drop in clothing and footwear (-3.6 % and -4.6 %, respectively). In food, prices of bread went down by 2.7 %, rolls and baguettes by 1.4 % and vegetables by 1.7 %. Prices of refrigerators and freezers, mobile phones, TV sets, cameras and camcorders, toys and sports equipment fell by one to two percent.

Prices of goods in total increased by 0.5 % and prices of services by 0.8 %.

In terms of the year-on-year comparison, in January, the increase in consumer prices was 1.7 %, i.e. 0.6 percentage points down on December. A slowdown in the year-on-year price growth was shown in the majority of divisions of consumer basket due to a marked increase in prices of some items in January 2010. The growth of prices of alcoholic beverages slowed down to 2.4 % (5.8 % in December). Amounts paid by patients for drugs were higher by 5.2 % (10.5 % in December). In 'transport', the rise in prices of automotive fuel slowed down to 11.1 % (16.6 % in December). Catering services increased by 1.6 % (2.5 % in December). In food, the marked growth of prices of vegetables slowed down from 34.0 % in December to 12.7 % in January.

The highest upward effect on the consumer price level came, as before, from prices in 'food and non-alcoholic beverages' (in spite of a slowdown of their rise) and in January also from prices in 'housing, water, electricity, gas and other fuels'. Prices of rolls and baguettes were higher by 10.6 % than in the previous year, flour by 27.9 %, milk by 10.8 %, butter by 15.1 %, edible oils by 20.6 %, fruit by 13.6 %, potatoes by 58.2 % and cocoa by 18.2 %. In 'housing, water, electricity, gas and other fuels', prices of electricity went up by 4.8 %, natural gas by 9.2 %, heat and hot water by 2.9 %, both water supply and sewerage collection by 6.1 %. The net actual rentals went up by 2.3 %, of which for dwellings with regulated rentals rose by 6.3 % and for dwellings with market rentals by 0.6 %.

Prices of clothing and footwear were lower than in the previous year (-3.8 % and –3.4 %, respectively). Prices of household appliances went down by 3.0 %, prices of audio-visual, photographic and information processing equipment were lower by 9.5 % and prices of mobile phones by 12.5 %.
Prices of goods in total increased by 2.1 % and prices of services by 1.2 %. The overall consumer price index excluding imputed rentals was 102.0 %, year-on-year.

Average inflation rate, i.e. the increase in the average consumer price index in the twelve months to January 2011 compared with the average CPI in the previous twelve months, stood at 1.6 % in January, which is 0.1 percentage points up compared with December.

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 2.6 % in December 2010 (0.3 percentage points up on November). The highest annual rates were observed in Romania (7.9 %) and Estonia (5.4 %). In Germany, the y-o-y growth amounted to 1.9 % (1.6 % in November). Similarly, in Slovakia, the increase in the HICP went up to 1.3 % (1.0 % in November). According to preliminary calculations, the HICP in the Czech Republic in January 2011 rose by 0.8 %, month-on-month, and by 1.9 % (2.3 % in December), year-on-year. The MUICP (Monetary Union Index of Consumer Prices) flash estimate for the Eurozone in January 2011 was 2.4 %, y-o-y, as Eurostat announced (more information on the Eurostat's web pages: HICP) .

Notes
Responsible manager of the CZSO: Jiri Mrazek, Department Director
Contact: Pavla Sediva, phone (+420) 274052138, e-mail: 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: 7101-11 Consumer Price Indices – Basic Breakdown (periodicity: monthly)
7103-11 Consumer Price Indices – Detailed Breakdown (periodicity: annually)
Documents available on the CZSO website: 7103-11 Consumer Price Indices – Detailed Breakdown (periodicity: monthly) ( /csu/czso/2-ep-7 )
Next News Release: 9 March 2011
Text not edited for language.

Attachments

⇩ aisc020911.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)