Consumer price indices - inflation - May 2010

The total consumer price level in May increased compared with April by 0.1 %. This development came primarily from a price rise in 'alcoholic beverages, tobacco'. In May the growth of consumer prices accelerated to 1.2 %, y-o-y, (from 1.1 % in April).

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The month-on-month consumer price growth by 0.1 % owed primarily to prices of tobacco products by 2.1 %, which was influenced particularly by a rise in their excise tax since January 2010. In 'transport', the growth of prices of automotive fuel continued for the fifth month, which reached 1.5 % in May. In May, prices of petrol Natural 95 were the highest since July 2008, prices of diesel oil since September 2008. In 'health', prices and fees paid by patients on prescription drugs rose by 4.4 % and seasonal prices of therapeutic stays at spa by 6.5 %.

A downward effect on the price level came from a price drop in food, primarily a decrease in prices of vegetables incl. potatoes by 5.7 %. Prices of bread dropped by 2.7 %, flour by 3.5 %, yoghurts by 1.3 % and chocolate and chocolate-based products by 3.2 %.

Prices of goods in total increased by 0.2 % and prices of services by 0.1 %.

In terms of the year-on-year comparison, in May 2010, the increase in consumer prices was 1.2 %, which is by 0.1 percentage point up on April. The acceleration in the price growth was shown primarily in 'alcoholic beverages, tobacco', in which the growth of prices of tobacco products accelerated to 4.1 % (from 2.3 % in April). In 'health', prices and fees paid by patients on prescription drugs increased by 13.8 %.

A marked upward effect on the price level came, as before, from prices in 'housing, water, electricity, gas and other fuels' and 'transport'. In 'housing, water, electricity, gas and other fuels' the net actual rentals went up by 9.9 %, of which for dwellings with regulated rentals rose by 18.1 % and for dwellings with market rentals dropped by 0.2 %. In 'transport', prices of automotive fuel went up by 20.5 %.

The reduction of price level came from prices in 'food and non-alcoholic beverages'. Prices of rolls and baguettes were lower by 19.2 %, flour by 19.7 %, pork by 6.1 %, edible oils by 7.2 %, sugar by 6.0 %. Prices of clothing were also lower (-2.5 %). In 'housing, water, electricity, gas and other fuels', prices of natural gas went down by 6.5 % and electricity by 2.7 %. In 'recreation and culture', prices of audio-visual, photographic and information processing equipment were lower by 9.6 %. In 'communications', prices of mobile phones decreased and so did prices of telephone and telefax services (-14.1 % and -2.5 %, respectively).

Prices of goods in total increased by 0.5 % and prices of services by 2.1 %. The overall consumer price index excluding imputed rentals was 101.2 %, year-on-year.

Average inflation rate, i.e. the increase in the average consumer price index in the twelve months to May 2010 compared with the average CPI in the previous twelve months, stood at 0.6 % in May, which is the same compared with April 2010.

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 2.0 % in April 2010 (0.1 percentage point up on March). The highest annual rates were observed in Hungary (5.7 %) and Romania (4.2 %). The year-on-year decrease continued in Latvia (-2.8 %) and Ireland (-2.5 %). In Germany, the y-o-y growth slowed down to 1.0 % (from 1.2 % in March). On the contrary, in Slovakia, the price rise accelerated to 0.7 % (from 0.3 % in March). According to preliminary calculations, the HICP in the Czech Republic in May increased by 0.2 %, month-on-month, and by 1.0 % (from 0.9 % in April), year-on-year. The MUICP (Monetary Union Index of Consumer Prices) flash estimate for the Eurozone in May 2010 was 1.6 %, y-o-y, as Eurostat announced (more information on the Eurostat's web pages: HICP) .

Starting from January 2010, the consumer price indices are calculated with revised weights. The weights are based on expenditure of households in the year 2008. Calculated indices are chained on all levels of the consumer basket with the base period 2005 = 100. Thus, a continuation of the existing index time series 2005 = 100, from which indices to other bases are derived (previous month = 100, corresponding period of last year = 100 and annual rolling average, i.e. average of index numbers over last 12 months to the average for previous 12 months) is ensured.

Note
Contact: Pavla Sediva, phone (+420) 274052138, e-mail: pavla.sediva@czso.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: 7101-10 Consumer Price Indices – Basic Breakdown (periodicity: monthly)
7103-10 Consumer Price Indices – Detailed Breakdown (periodicity: annually)
Documents available on the CZSO website: 7103-10 Consumer Price Indices – Detailed Breakdown (periodicity: monthly)
( /csu/czso/2-ep-7 )

Attachments

⇩ aisc060910.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)