Consumer price indices - inflation - December 2018

Average inflation rate stood at 2.1% in 2018

10.01.2019
Code: 012024-18
 

Consumer prices in December increased by 0.1% compared with November. This development came from a price increase in 'food and non-alcoholic beverages' in particular. The year-on-year growth of consumer prices amounted to 2.0% in December (the same as in November). The average inflation rate for 2018 as a whole was 2.1%.

The month-on-month rise in consumer prices in 'food and non-alcoholic beverages' came primarily from higher prices of vegetables by 11.9%, of which prices of potatoes went up by 29.7%. Prices of bread and cereals were higher by 3.1% and fruit by 6.0%. In 'housing, water, electricity, gas and other fuels', prices of natural gas and actual rentals for housing rose in particular (0.3% and 0.2%, respectively). In 'recreation and culture', prices of package holidays went up by 0.5%. The growth of prices in 'restaurants and hotels' was due to higher prices of catering services (0.4%).

The decrease in the overall consumer price level in December came mainly from lower prices in 'transport' due to prices of fuels and lubricants for personal transport equipment, which went down by 3.6%, month-on-month. In 'alcoholic beverages and tobacco', prices of spirits were lower by 2.9% and prices of wine by 2.0%. In 'clothing and footwear', prices of garments went down by 1.4%. In food, prices of poultry dropped by 4.4%, UHT semi skimmed milk by 7.2%, cheese and curd by 1.7%, butter by 5.0%.

Prices of goods in total remained unchanged compared with November and prices of services rose by 0.2%.

In terms of the year-on-year comparison, in December, the consumer prices rose by 2.0%, i.e. the same as in November. A slowdown in the price drop in 'food and non-alcoholic beverages' came especially from prices of vegetables, which were higher by 14.8%, year-on-year (10.5% in November), of which potato prices went up by 41.7% (19.0% in November). In 'alcoholic beverages and tobacco', the increase in prices of alcoholic beverages slowed down to 1.4% (2.1% in November). In 'transport', the year-on-year rise in prices decelerated due to prices of fuels and lubricants for personal transport equipment, which were higher by 6.1% (10.1% in November). On the other hand, in 'recreation and culture', the growth of prices accelerated to 0.8% (0.4% in November).

The biggest influence on the growth of the y-o-y price level came, as before, from prices in 'housing, water, electricity, gas and other fuels', where prices of actual rentals for housing increased by 3.3%, water supply by 1.8%, sewage collection by 1.3%, electricity by 5.6%, heat and hot water by 1.0%. Next in order of influence were prices in 'miscellaneous goods and services', where prices of personal care rose by 4.3%, insurance by 6.4%, and financial services by 4.3%. The impact on the price level increase had also prices in 'alcoholic beverages and tobacco' (a rise by 2.8%) The growth of prices continued, although at a slower pace, in 'transport' (a growth by 1.6%). In 'restaurants and hotels', prices of catering services were higher by 3.9% and prices of accommodation services by 3.5%.

A reduction in the price level in December came from prices in 'food and non-alcoholic beverages', where prices of eggs fell by 27.8%, sugar by 31.0%, UHT semi skimmed milk by 6.9%. In 'clothing and footwear', prices of garments were lower by 2.7%. In 'housing, water, electricity, gas and other fuels', prices of natural gas decreased by 0.2%.

Prices of goods in total and services went up (1.2% and 3.4%, respectively). The overall consumer price index excluding imputed rentals for housing was 101.5%, year-on-year.

The average inflation rate as measured by the increase in the average consumer price index in the twelve months 2018 compared with the average CPI in the twelve months 2017 was 2.1%, i.e. 0.4 percentage points down on 2017. It was the third highest average inflation rate in the previous 10 years (higher inflation rate was only 3.3% in 2012 and in 2017). Prices of goods in total rose by 1.6% and prices of services by 3.0%.

(A summary of the development of the consumer price index in 2018 is a part of the Q4 analysis, which is released at the same time).

According to preliminary data of Eurostat, the year-on-year change in the average harmonized index of consumer prices (HICP)[1]) in the EU28 member states amounted to 2.0% in November (0.2 percentage point down on October). The rise in prices was the highest in Estonia, Hungary and Romania (all 3.2%) and the lowest price increase was in Denmark (0.7%). In Slovakia, the price rise decelerated to 2.0% in November from 2.5% in October. In Germany, prices were higher by 2.2% (2.4% in October). According to preliminary calculations, the month-on-month change in the HICP in the Czech Republic in December amounted to 0.0% and the year-on-year growth was the same as in November, i.e. 1.6%. The MUICP (Monetary Union Index of Consumer Prices) flash estimate for the Eurozone in December 2018 was 1.6%, y-o-y, as Eurostat announced (more information on the Eurostat’s web pages: HICP.)

________________
Notes:
Responsible manager of the CZSO: Jiri Mrazek, Director of Price Statistics Department, email: jiri.mrazek@czso.cz
Contact: Pavla Sediva, Head of the Consumer Price Statistics Unit, phone (+420) 274052138, email:  pavla.sediva@czso.cz
Data source: 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: 012018-18 Consumer Price Indices – Basic Breakdown (periodicity: monthly), 012023-18 Consumer price Indices – Detailed Breakdown (periodicity: monthly) and 012019-18 Consumer Price Indices – Detailed Breakdown (periodicity: annually)
Internet: https://www.czso.cz/csu/czso/inflation-consumer-prices
Next News Release: 13 February 2019
Text not edited for language


[1]) Imputed rentals are excluded from the HICP.


Related analysis: Analysis - Consumer price indices - 4. quarter of 2018

  • aisc011019.docx
  • Annexes:
  • Table 1 Consumer Price Index (indices, inflation rate)
  • Table 2 Consumer Price Index (breakdown of the growth – month-on-month, core inflation)
  • Table 3 Consumer Price Index (breakdown of the growth – month-on-month, year-on-year)
  • Table 4 Consumer Price Index (social groups of households – indices, inflation rate)
  • Table 5 Consumer Price Index (analytical table, specific consumer price indices)
  • Chart 1 Consumer Price Index (year-on-year changes, changes on base year)
  • Chart 2 Harmonized Index of Consumer Prices – International comparison
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Published: 10.01.2019
The data are valid as of the release date of the publication.


Contact: Information Services Unit - Headquarters, tel.: +420 274 056 789, email: infoservis@czso.cz