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Macroeconomics  |  March 06, 2013 12:50:54

Measuring inflation in the Czech Republic

Less than a month I worked   measurement of unemployment in the Czech Republic , namely the change in methodology. Another media widely watched indicator of the rate of inflation. In many discussions lez encounter mention that individual inflation is completely different. Therefore, I have prepared a brief overview of the consumer basket and added a few comparisons.

Consumer basket   consists of approximately one thousand items divided into 12 basic categories. These categories I lined up in order of importance.

  1. Housing - 28%
  2. Food and non-alcoholic drinks - 15.0%
  3. Transportation - 10.5%
  4. Alcoholic beverages and tobacco - 9.7%
  5. Recreation, culture-9.0%
  6. Housing equipment - 5.8%
  7. Hotels and restaurants - 4.9%
  8. Post, Telecommunications - 3.6%
  9. Clothes - 3.6%
  10. Health -2.3%
  11. Education - 0.8%
  12. Other - 6.9%

File with the data I've been through and I came across a number of other interesting comparisons. Reference to the detailed composition of the consumer basket can be found at   pages of the Czech Statistical Office

I tried to guess what individual item has the greatest weight. I missed.

The item with the highest individual weight   - 10.8% - is "imputed rent of owner - occupiers." So the item you realistically no one pays.

It is the amount that owners of flats and houses to pay for it themselves, in an apartment or house they live. This amount is more than double compared to the classical rent paid in rental or cooperative dwellings (4.7%). This amount is then less important than the price of cigarettes (4.9%).

Electricity, gas, heating and hot water, then a total of 10%. That's quite enough. The actual water rate to 1% of the total weight, that is less than half compared with the cost of beer.

Deliberately, price changes which media items are paid significantly more attention?

Another comparison is found numerous.

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