An increase in recreation and culture services bolsters inflation: gov’t data.
By BOHEMIST STAFF
PRAGUE – Inflation in the Czech Republic grew 0.5 percent year-on-year thanks primarily to a rise in the cost of cost in the tourism and service sectors, according to data released today by the Czech Statistical Office.
According to the data, prices in July grew 0.3 percent compared the the month before as seasonal holiday package prices rose 12.8 percent. The sudden rise in consumer prices in July were also exacerbated by higher food prices. That includes cheese prices, which grew 3.9 percent over the month, pork, which grew by 3.5 percent and sugar, which rose by 6.5 percent.
In alcoholic beverages and tobacco category, the price of wine and beer rose in particular 2.7 percent and 1.7 percent respectively, according to the data. For the year, the price of tobacco and alcohol rose by 5.4 and 3.0 percent respectively.
At the same time, year-on-year CPI data shows that the price of food and beverage remained stable and in some cases saw a substantive decline in cost. Among those include eggs, cheese and yogurt, which dropped 11.4 percent, 5.5 percent and 10.4 percent respectively.
“A reduction in the y-o-y price level came, as before, from the price decrease in ‘transport’ due to a decline in automotive fuel prices by 10.6%. The drop in prices continued, albeit with significantly lower effect in ‘food and non-alcoholic beverages’. In ‘housing, water, electricity, gas and other fuels’, prices of natural gas went down by 6.9%,” the report states.
On a regional scale, inflation in the Czech Republic for the month of June was slightly higher than the average of the entire European Union, which remained at 0.0 percent. Inflation here grew 0.1 percent that month.