Czech consumer price inflation accelerates in October

Czech consumer price inflation accelerated in October in sequential as well as in annual terms. On a month-on-month basis, consumer prices rose 0.3 percent, primarily due to an increase in ‘clothing and footwear’ prices. The prices of garments rose 4.2 percent, whereas the footwear prices increased 5.8 percent. Within transport, prices of automotive fuel increased 1.3 percent, whereas the prices of wine in alcoholic beverages and tobacco rose 1.5 percent.

Consumer prices in October increased compared with September by 0.3%. This development was primarily due to a rise in prices in 'clothing and footwear'. The year-on-year growth of consumer prices amounted to 0.8%, i.e. 0.3 percentage points up on September and the most since June 2015.

A decline in the level of prices was mainly due to decrease in price of ‘food and non-alcoholic beverages’, where vegetables prices, in particular, dropped 6 percent. Non-alcoholic beverages prices dropped 2.2 percent in the month. In all, prices of goods and services rose 0.3 percent and 0.2 percent respectively.

On an annual basis, Czech inflation accelerated 0.8 percent, up 0.3 percentage points from September. The acceleration was mainly due to reductions in the price fall in transport. This was caused by a deceleration in the decline in prices of automotive fuel by 3.2 percent. Within clothing and footwear, prices of footwear rose to 4.4 percent.

Prices in the alcoholic beverages and tobacco largely influenced the year-on-year price level in October. Also, prices in housing and utility and other fuels also influenced the price level.