Consumer price indices - inflation - December 2014

Average inflation rate amounted to 0.4% in 2014

09.01.2015
Code: 012024-14
 

Consumer prices in December dropped compared with November (-0.1%). This development was mainly due to the decrease in prices in 'transport'. The year-on-year increase in consumer prices decelerated to 0.1% in December (0.6% in November). The average inflation rate reached 0.4% and was the lowest since 2003. 

The month-on-month decrease in consumer prices in 'transport' came primarily from the reduction in prices of fuel (-5.2%), which was the biggest since December 2008. The average price of petrol Natural 95 (33.93 CZK per litre) was the lowest in December 2014 since February 2011. The average price of diesel oil amounted to 34.41 CZK per litre and was the lowest since September 2011. In 'clothing and footwear', prices of shoes and other footwear fell (-0.3%). In food, flour prices dropped (-2.8%) primarily as well as prices of meat (-0.7%), eggs (-1.1%), milk (-0.6%), cheese (-1.6%), butter (-2.3%), vegetables (-0.4%), non-alcoholic beverages (-1.0%). 

A contrary effect on the overall consumer price level in December owed to a moderate rise in the other divisions of the consumer basket. In 'food and non-alcoholic beverages', prices of fruit rose by 9.8% in particular as well as prices of potatoes by 12.0%, pasta by 4.2%, chocolate and chocolate-based products by 1.4%. In 'alcoholic beverages and tobacco', prices of wine increased by 1.0%, beer by 1.6%, while prices of spirits went down (-1.9%). In 'furnishings, household equipment and routine household maintenance', prices of detergents went particularly up by 1.7%. In 'transport', prices of new cars and passenger transport by railway rose (1.5% and 0.8%, respectively). In 'communication', prices of postal services increased by 4.5%. In 'miscellaneous goods and services', prices of financial services were higher by 0.4%.

Prices of goods in total dropped (-0.2%), while prices of services went up by 0.1%. 

In terms of the year-on-year comparison, in December, the consumer price level rose by 0.1%, i.e. 0.5 percentage points down from November. It was due primarily to higher m-o-m growth of prices in December 2013 than in December 2014. This was the case especially in prices in 'food and non-alcoholic beverages', which turned to the drop (-0.5%) in December from the y-o-y growth by 1.5% in November. The reduction in prices in 'food and non-alcoholic beverages' came especially from deeper y-o-y drop in prices of vegetables (-14.3% compared with -2.3% in November). Prices of milk, cheese and butter turned to a decrease from -2.1% to -2.8% (a rise from 0.7% to 1.6% in November). Many kinds of food saw a slowdown in the price growth. Prices of bread and cereals were higher by 0.3% (0.7% in November), meat by 0.7% (1.2% in November), eggs by 12.5% (16.7% in November), yoghurts by 4.6% (5.5% in November), other milk products by 1.8% (3.3% in November), fruit by 1.4% (2.2% in November). The y-o-y drop in prices in 'transport' was due to a fall in fuel prices -6.0% (a rise by 0.6% in November). 

Prices in 'food and non-alcoholic beverages' stopped to have an increasing influence on the growth of the price level in December. On the contrary, they started to have an anti-inflationary effect. The biggest effect had prices in 'miscellaneous goods and services', where prices of insurance and financial services were higher (2.9% and 5.6%, respectively). 

The reduction of the y-o-y price growth was affected by a decline in prices in 'housing, water, electricity, gas and other fuels' due to the fall in prices of electricity (-9.6%). Natural gas prices increased by 2.4%, the net actual rentals by 1.3%, water supply by 3.4%, sewage collection by 3.2%, heat and hot water by 0.6%. The year-on-year decrease in prices continued in 'communication' due to the drop in prices of telephone and telefax services and mobile phones (-1.6% and -19.0%, respectively). 

Prices of goods in total went down (-0.7%), while prices of services were higher by 1.2%. The overall consumer price index excluding imputed rentals was 100.0%, year-on-year.

Inflation rate, i.e. the increase in the average consumer price index in the twelve months to December 2014 compared with the average CPI in the previous twelve months, stood at 0.4% in December. 

According to preliminary data of Eurostat, the year-on-year increase in the average harmonized index of consumer prices (HICP)1) in the EU28 member states was 0.4% in November, i.e. 0.1 percentage point less than in October. Prices went up the most in Romania and Austria (both 1.5%). On the other hand, the largest price decline occurred in Bulgaria and Greece (-1.9% and -1.2%, respectively). In Slovakia, the y-o-y growth of prices was zero for the second month in a row. In Germany, the year-on-year price rise slowed down to 0.5% in November, i.e. 0.2% down on October. According to preliminary calculations, the HICP in the Czech Republic in December remained unchanged, month-on-month, and was higher by 0.1% (0.6% in November), year-on-year. The MUICP (Monetary Union Index of Consumer Prices) flash estimate for the Eurozone in December 2014 amounted to -0.2%, y-o-y, as Eurostat announced (more information on the Eurostat’s web pages: HICP).
__________________________

1) So far, imputed rentals have been excluded from the HICP.

Analysis - Consumer price indices in Q4 2014 and in the year 2014


Notes:
Responsible manager of the CZSO: Jiri Mrazek, Department Director, email: jiri.mrazek@czso.cz
Contact: Pavla Sediva, phone (+420) 274052138, email: 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: 012018-14 Consumer Price Indices – Basic Breakdown (periodicity: monthly) and 012019-14 Consumer Price Indices – Detailed Breakdown (periodicity: annually)
Related documents available on the CZSO website: 012023-14 Consumer Price Indices – Detailed Breakdown (periodicity: monthly)
/csu/czso/2-ep-7
Next News Release: 9 February 2015

Not edited for language.

  • aisc010915.docx
  • 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)
    Data were amended in this table on 26 January 2015. We apologise for any inconvenience.
  • Table 4 Consumer prices (social groups of households - indices, inflation rate)
  • Table 5 Consumer prices (analytical table, specific consumer price indices)
  • Graph 1 Consumer prices (year-on-year changes, changes on base year)
  • Graph 2 HICP – monthly data (2005 = 100)
Archive:
Show all Hide

Published: 09.01.2015
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