The average annual inflation rate (expressed as the change in the average harmonized index of consumer prices over the last 12 months compared with the average of the previous 12 months) was 1.8 % in January 2021, down by 0.2 pp from December 2020.

In January, the calculation of the consumer price index was significantly affected by the situation associated with the corona crisis. The traditional field price survey was influenced by the closure of selected stores and service operations. Undiscovered prices were replaced by prices from other sources, e.g. websites, telephone and e-mail inquiries. Part of the prices were resolved by post-imputation. More in the Methodological note HERE.

In January 2021, the annual rate of inflation measured by the harmonized index of consumer prices (HICP) fell sharply to 0.7 %. The decrease was mainly due to the year-on-year decline in food and energy prices.

The month-on-month HICP was 100.3 in January 2021, and its value in January 2020 was 101.3. This decrease was mainly influenced by the development of energy prices, while in January 2020 these prices increased, in January 2021 energy prices fell.

The overall month-on-month development of the HICP was mainly influenced by price movements in the following COICOP divisions: Communication (positive contribution 0.26 percentage points), Food and non-alcoholic beverages (positive contribution 0.25 percentage points), Transport (positive contribution 0.19 pp), Recreation and culture (positive contribution 0.10 pp); the most significant negative impact was the decrease in prices in the division of Housing, water, electricity, gas and other fuels (negative contribution -0.52 pp), in particular the decrease in energy prices (negative contribution -0.54 pp).