The average annual inflation rate (expressed by the change in the average harmonized index of consumer prices over the last 12 months compared to the average of the previous 12 months) was 2.0 % in December 2020, decreased by 0.8 pp compared to the year 2019 and was thus the lowest since 2017.

In December 2020, the annual rate of inflation measured by the harmonized index of consumer prices (HICP) reached 1.6 %, remaining at the November level.

The month-on-month HICP was 99.9 %.

The month-on-month decrease in the HICP by one tenth of a percent was mainly influenced by decerase of prices in the following divisions of the COICOP classification:  Food and non-alcoholic beverages (negative contribution -0.09 percentage point), of which decrease in food prices (negative contribution -0.08 pp) and decrease in prices of non-alcoholic beverages (negative contribution -0.01 percentage points); Alcoholic beverages and tobacco (negative contribution -0.03 pp), of which the prices of alcoholic beverages decreased (negative contribution -0.03 pp) and tobacco prices did not change; Clothing and footwear (negative contribution -0.01 pp). On the contrary, prices increased month-on-month in the following branches: Housing, water, electricity, gas and other fuels (positive contribution 0.01 pp); Furniture, furnishings and routine household maintenance (positive contribution 0.01 pp); Miscellaneous goods and services (positive contribution 0.02 pp), Transport (positive contribution 0.03 pp).