Consumer price indices - inflation - October 2010

The total consumer price level in October decreased compared with September by 0.2 %. This development came primarily from a drop in prices in 'food and non-alcoholic beverages', 'alcoholic beverages, tobacco', 'recreation and culture'. The year-on-year rise in consumer prices amounted to 2.0 % in October (the same as in September).

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The month-on-month consumer price drop by 0.2 % owed primarily to a fall in prices of fruit and vegetables (-4.8 % and -4.3 %, respectively). The most marked drop was recorded for prices of lemons and in vegetables for prices of cauliflower (-32.2 % and –31.9 %, respectively). Prices of non-alcoholic beverages were lower by 1.1 %. The same drop (-1.1 %) was registered for prices of alcoholic beverages, of which prices of spirits fell by 1.6 %, wine by 1.0 %, bottled beer by 0.9 %. The seasonal decrease in prices of package holidays continued in October, primarily in prices of domestic recreational stays, which were lower by 8.3 %. In 'transport', prices of second hand cars decreased by 1.9 % and bicycles by 1.4 %.

A contrary effect on the price level came from a price rise in clothing and footwear (1.7 % and 2.1 %, respectively) due primarily to higher prices of new seasonal models. In food, prices of rolls and baguettes increased primarily by 2.9 %, flour by 3.3 %, butter by 3.0 %, milk by 2.7 % and sugar by 2.3 %.

Prices of goods in total and prices of services decreased (both by 0.2 %).

In terms of the year-on-year comparison, in October, the increase in consumer prices was 2.0 %, i.e. the same as in September. An accelerated y-o-y price growth was recorded particularly for 'transport', in which prices of automotive fuel went up by 14.5 % (from 11.8 % in September). On the other hand, a lower year-on-year growth in October compared to September was registered for prices of alcoholic beverages, which increased by 3.8 % (5.1 % in September).

The highest upward effect on the consumer price level came from prices in 'food and non-alcoholic beverages', and also 'housing, water, electricity, gas and other fuels'. Prices of milk were higher by 11.0 %, butter by 22.7 %, fruit by 10.9 %, potatoes by 52.0 %, cocoa by 16.3 %. In 'housing, water electricity, gas and other fuels', the net actual rentals went up by 8.5 %, of which for dwellings with regulated rentals rose by 16.9 % and for dwellings with market rentals dropped by 1.9 %. Prices of natural gas were higher by 6.6 %, heat and hot water by 3.4 %, water supply by 3.8 %, sewerage collection by 4.9 %. In health, prices of medicaments and fees paid by patients on prescription drugs rose by 11.9 %.

Prices of clothing and footwear were lower than in the previous year (-3.0 % and -1.5 %, respectively). In 'communications', prices of mobile phones decreased by 11.4 % and in 'recreation and culture', prices of audio-visual, photographic and information processing equipment were lower by 8.0 %. In 'housing, water, electricity, gas and other fuels', prices of electricity went down by 2.7 %. In 'transport', prices of cars decreased by 13.2 %.

Prices of goods in total increased by 1.7 % and prices of services by 2.2 %. 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 October 2010 compared with the average CPI in the previous twelve months, stood at 1.2 % in October, which is 0.1 percentage point up compared with September.

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 2.2 % in September 2010 (0.2 percentage points up on August). The highest annual rates were observed in Romania (7.7 %) and Greece (5.7 %). The year-on-year decrease continued in Ireland (-1.0 %). In Germany, the y-o-y growth accelerated to 1.3 % (from 1.0 % in August). In Slovakia, the price rise was 1.1 % in September (the same as in August). According to preliminary calculations, the HICP in the Czech Republic in October decreased by 0.3 %, month-on-month, and rose by 1.8 % (the same as in September), year-on-year. The MUICP (Monetary Union Index of Consumer Prices) flash estimate for the Eurozone in October 2010 was 1.9 %, 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)
Text not edited for language.

Attachments

⇩ aisc110910.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)