Inflation accelerated to 8.5 percent in October due to statistical factors

Prague – Year-on-year growth in consumer prices accelerated to 8.5 percent in October from 6.9 percent in September. This happened after the previous eight months of reducing the rate of inflation. However, the figure for October is affected by the fact that a year ago statisticians included the government’s energy saving tariff in the calculation as a discount on electricity. Without this influence, year-on-year inflation would have been below six percent this October. This was announced today by the Czech Statistical Office (ČSÚ). In a month-on-month comparison, consumer prices rose by 0.1 percent in October.

“The acceleration of year-on-year price growth in October to 8.5 percent was mainly caused by the projection of last year’s energy-saving tariff into electricity prices. If we had not included this energy-saving tariff in the calculation, the price increase would have been 5.8 percent,” said Pavla Šedivá, head of the consumer price statistics department CZSO.

The prices of goods in October rose by 10.1 percent compared to last year. For services, statistics recorded an increase of 6.1 percent.

Housing prices had the greatest influence on the year-on-year increase in price levels in October. Rents in apartments went up by almost eight percent, water by 16.3 percent and sewage by more than a quarter. Electricity prices statistically accelerated year-on-year growth to almost 150 percent, which was reflected in the energy-saving tariff calculated just last year. Without this influence, the price of electricity this October would have been higher by less than 25 percent year-on-year, according to statistics. Natural gas prices rose by 6.2 percent compared to last October, and people paid almost a third more for heat and hot water.

The second most affected were the prices of food and non-alcoholic beverages, which, according to statistics, rose by 3.7 percent. Year-on-year bread prices rose by around five percent and vegetables by 12.4 percent, while potato prices rose by almost half year-on-year compared to last October. But it made eggs cheaper, by 6.2 percent, or sugar, the price of which fell by more than a tenth year-on-year.

In the recreation and culture section, the prices of holidays with complex services were higher in October, by 11.6 percent. The prices of catering services rose by almost nine percent year-on-year, and the prices of accommodation by 12.2 percent.

Discounts in the transport section contributed to the year-on-year decrease in the price level in October. Car prices fell by 4.3 percent and fuel and oil prices by 7.3 percent.

Month-on-month, consumer prices rose by 0.1 percent in October. The prices of goods in total remained at the September level, services rose in price by 0.2 percent.

With food, statisticians noted a month-on-month increase, especially for eggs, which rose in price by almost 11 percent. The price of pork rose by five percent compared to September, fruit by three percent and vegetables by 2.2 percent. On the contrary, poultry meat, potatoes and sugar became cheaper.

Clothes and shoes came out of the consumer auction. On the contrary, the CZSO recorded a month-on-month discount for natural gas, which amounted to three percent, and also for electricity, which became cheaper by 1.7 percent.

CR October inflation estimates