Consumer price indices - inflation - September 2010

The total consumer price level in September decreased compared with August by 0.3 %. This development came primarily from a drop in prices of seasonal recreation stays in 'recreation and culture'. The year-on-year rise in consumer prices accelerated moderately to 2.0 % in September (from 1.9 % in August).

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The month-on-month consumer price drop by 0.3 % owed primarily to a fall in prices of package holidays by 14.7 % (similarly as in the previous years) due to the end of summer season. In 'transport', prices of automotive fuel dropped by 1.0 % and prices of cars by 0.5 %. In food, prices of rolls and baguettes decreased primarily by 4.0 %, stone fruit and berry plants by 15.1 %, sugar by 3.6 %.

A contrary effect on the price level came from a price rise in clothing and footwear (1.5 % and 2.3 %, respectively) due to higher prices of new seasonal models. As the new school year started, fees in kindergartens increased particularly by 4.5 %, at private primary schools by 2.4 %, in after-school care centres by 4.6 % and for in-service courses by 4.4 %. In 'miscellaneous goods and services', prices of financial services rose by 3.8 %. In food, prices of flour increased primarily by 8.2 %, butter by 4.0 % and vegetables cultivated for their fruit by 7.8 %.

Prices of goods in total remained unchanged, m-o-m, while prices of services dropped by 0.8 %.

In terms of the year-on-year comparison, in September, the increase in consumer prices was 2.0 %, i.e. 0.1 percentage point up on August. An acceleration of y-o-y price growth was recorded particularly for 'miscellaneous goods and services', in which prices of financial services went up by 4.0 % (from 0.2 % in August). A moderate acceleration of price rise was registered also in 'food and non-alcoholic beverages'. Prices of butter were higher by 24.9 % (from 19.6 % in August), potatoes by 58.6 % (from 53.2 % in August) and in the group milk, cheese and eggs by 6.3 % (from 5.2 % in August).

The highest upward effect on the price level came from prices in 'food and non-alcoholic beverages', 'housing, water, electricity, gas and other fuels' and 'alcoholic beverages, tobacco'. In 'housing, water electricity, gas and other fuels', the net actual rentals went up by 9.0 %, of which for dwellings with regulated rentals rose by 17.1 % and for dwellings with market rentals dropped by 0.8 %. Prices of natural gas were higher by 3.9 %, heat and hot water by 3.5 %, water supply by 3.8 %, sewerage collection by 4.9 %. Prices of alcoholic beverages rose by 5.1 %, identical to prices of tobacco products. Despite the m-o-m drop, prices of automotive fuel were higher by 11.8 %, y-o-y.

Prices of clothing and footwear were lower than in the previous year (-2.8 % and -1.2 %, respectively). In 'communications', prices of mobile phones decreased and so did prices of telephone and telefax services (-10.8 % and -1.2 %, respectively). In 'recreation and culture', prices of audio-visual, photographic and information processing equipment were lower by 7.9 %. In 'housing, water, electricity, gas and other fuels', prices of electricity went down by 2.7 %. In 'transport', prices of cars decreased by 12.6 %.

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 September 2010 compared with the average CPI in the previous twelve months, stood at 1.1 % in September, which is 0.2 percentage point up compared with August.

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 August 2010 (0.1 percentage point down on July). The highest annual rates were observed in Romania (7.6 %) and Greece (5.6 %). The year-on-year decrease continued in Ireland (-1.2 %) and Latvia (-0.4 %). In Germany, the y-o-y growth decelerated to 1.0 % (from 1.2 % in July). In Slovakia, the price rise accelerated moderately to 1.1 % in August (from 1.0 % in July). According to preliminary calculations, the HICP in the Czech Republic in September decreased by 0.2 %, month-on-month, and rose by 1.8 % (1.5 % in August), year-on-year. The MUICP (Monetary Union Index of Consumer Prices) flash estimate for the Eurozone in September 2010 was 1.8 %, 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.

Analysis - Consumer price indices in Q3 2010

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

⇩ aisc101110.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)