Inflation decreases and amounts to 0.41 % in December

Average annual inflation rate amounted to 0.74% in 2020

• Inflation decreased from 0.51 % to 0.41 % in December.
• The consumer price index this month increases by 0.03 points or 0.03 %.
• Inflation based on the health index has declined from 0.83 % to 0.64 %.
• The smoothed health index amounted to 107.72 points in December.
• The average annual inflation rate of the consumer price index amounted to 0,74% in 2020. The average annual inflation rate of the health index amounted to 0,99%.
• The most significant price increases in December were registered for motor fuels, rents, bread and cereals and personal care products. However, fruit, domestic heating oil, alcoholic beverages, electricity, vegetables and shoes have had a decreasing effect on the index.
• The current measures due to the COVID-19 had an impact on the calculation of the index. More information is available here. In practice, this means that for the month of December there is an increasing effect on the index for holiday villages due to the carry forward of prices with last year’s seasonal correction factor. For hotel rooms, there is a decreasing effect on the index for the same reason.

The consumer price index amounts to 109.49 points in December 2020. It has increased by 0.03 points over the month. Inflation has dropped from 0.51 % to 0.41 %. The health index loses 0.03 points and is now at 109.88 points. Inflation based on the health index has fallen to 0.64 % from 0.83 %. The most significant price increases were registered for motor fuels, rents, bread and cereals and personal care products. However, fruit, domestic heating oil, alcoholic beverages, electricity, vegetables and shoes have had a decreasing effect on the index.

The average annual inflation rate in 2020 amounted to 0,74% compared to 1,44% in 2019. The average annual inflation rate of the health index amounted to 0,99% in 2020 compared to 1,46% in 2019.

Some products and services that rose sharply in price compared to last year are:

Some products and services that fell sharply in price compared to last year are:

The consumer price index has risen by 0.03 points or 0.03 % in December 2020 and is now running at 109.49 points, compared to 109.46 points in November 2020 (2013=100). The health index has gone down by 0.03 points to 109.88 points in December, compared to 109.91 points in November. The smoothed health index amounted to 107.72 points in December. The next central index for public service and social benefits is set at 109.34 points.

Products with the largest upward effect in December were motor fuels, rents, holiday villages and camping sites, bread and cereals and personal care products. However, fruit, domestic heating oil, alcoholic beverages, electricity, vegetables, shoes and hotel rooms have had a decreasing effect on the index. The most important trends this month are:

(*) consequence of the carry forward of prices with a seasonal correction factor

Motor fuels became on average 2.9 % more expensive. Rent prices rose by 0.8 % on average. Bread and cereals were on average 0.6 % more expensive than last month. Prices for personal care products have increased on average by 1.4 %.

Fruit became on average 5.1 % less expensive compared to last month. Domestic heating oil prices went down by 4.9 %. Alcoholic beverages have become on average 2.1 % less expensive this month. Vegetables decreased in price by 1.2 % on average compared to last month. Electricity has become on average 0.8 % less expensive. Prices for footwear have decreased by 1.7 %.

Inflation now amounts to 0.41 % compared to 0.51 % in November and 0.74 % in October. Inflation based on the health index amounted to 0.64 % this month compared to 0.83 % in November and 1.04 % in October. Inflation without energy has gone down to 1.40 % in December compared to 1.56 % in November and 1.75 % in October. Core inflation, which does not take into account price evolutions of energy products and unprocessed food, amounts to 1.33 % in December, compared to 1.34 % in November and 1.38 % in October.

Inflation of food now amounts to 1.74 %, compared to 2.40 % last month and 3.30 % in October. Fresh fruit now costs 1.3 % less than in December 2019. Fresh vegetable prices are on the rise: 3.0 % on an annual basis. Fish and shellfish are 6.8 % more expensive than in December 2019. Meat is 1.9 % more expensive than last year. Prices for non-alcoholic beverages are now on average 1.1 % higher than in December last year. Alcoholic beverages are 3.0 % more expensive than last year. Tobacco prices went up by 1.9 % compared to December 2019.

Energy inflation is now running at -8.98 %, compared to -9.46 % in November and -8.73 % in October. Electricity is now 4.5 % less expensive than a year ago. Natural gas is 8.4 % cheaper on an annual basis. Prices for domestic heating oil, calculated based on a smoothed 12-month moving average, have declined by 27.7 % over a year. Motor fuels are 7.7 % less expensive than last year. Inflation for services remains unchanged at 1.30 %. Inflation for rents amounted to 2.89 % in November and has increased to 3.63 % in December.

The main group with the largest upward effect^[i] on inflation in December was "Food and non-alcoholic beverages" with an effect of 0.25 percentage points. The largest downward effect was measured for “Housing, water and energy” with -0.39 percentage points.

The main group with the largest contribution^[ii] to inflation is "Food and non-alcoholic beverages" with 0.28 percentage points. The lowest contribution to inflation was registered by the main group “Housing, water and energy”, with -0.25 percentage points.