The CNB comments on the March 2024 inflation figures
According to figures released today, the price level increased by 2% year on year in March 2024. Annual inflation was unchanged compared to the previous month. The CNB’s tight monetary policy to date and the subdued domestic economic activity helped stabilise inflation at the target.
Annual inflation was 0.9 percentage point lower in March than the CNB’s winter forecast. There was a greater-than-expected slowdown in administered price inflation. Core inflation was also somewhat lower than forecasted. The decline in prices of food, beverages and tobacco was roughly in line with the forecast, as their month-on-month decrease in March offset the previous shallower-than-expected annual decline at the start of the year. Conversely, contrary to expectations, fuel prices increased year on year in March.
March 2024
year-on-year in %
MPR Winter 2024
actual value
CPI
2.9
2.0
Administered prices
9.5
6.6
First-round impacts of changes to indirect taxes
0.1
0.1
Adjusted for changes to indirect taxes
Prices of food, beverages, tobacco
-2.0
-2.2
Core inflation
3.3
2.7
Fuel prices
-1.6
3.8
Monetary policy-relevant inflation
2.8
1.9
Core inflation slowed slightly further in March. It has been fading for the second consecutive year, reflecting low growth in prices of foreign inputs and a cooling of domestic demand due to a restrictive CNB monetary policy stance. Subdued domestic economic activity causing a decline in the profit margins of producers and retailers led to slightly slower growth in goods prices. Growth in services prices also eased marginally but remains elevated. Within services prices, the growth in imputed rent remained low due to an only gradual recovery on the property market.
The year-on-year decrease in food prices deepened in March due to declining global agricultural commodity prices and domestic agricultural producer prices. Subdued consumer demand for food acted in the same direction. The increase in fuel prices picked up pace in March, driven by continued growth in oil prices on global markets and a weaker koruna. Year-on-year growth in administered prices accelerated slightly in March, due to an increase in the price of the road toll vignette.
In month-on-month terms, the price level rose only marginally (by 0.1%) in March. The intensity of the repricing of goods and services in Q1 was below the assumptions of the winter forecast. According to the forecast, inflation will be close to the 2% target throughout this year.
Petr Král, Executive Director, Monetary Department
Inflation remains at the CNB’s 2% target in March
The CNB comments on the March 2024 inflation figures
According to figures released today, the price level increased by 2% year on year in March 2024. Annual inflation was unchanged compared to the previous month. The CNB’s tight monetary policy to date and the subdued domestic economic activity helped stabilise inflation at the target.
Annual inflation was 0.9 percentage point lower in March than the CNB’s winter forecast. There was a greater-than-expected slowdown in administered price inflation. Core inflation was also somewhat lower than forecasted. The decline in prices of food, beverages and tobacco was roughly in line with the forecast, as their month-on-month decrease in March offset the previous shallower-than-expected annual decline at the start of the year. Conversely, contrary to expectations, fuel prices increased year on year in March.
Core inflation slowed slightly further in March. It has been fading for the second consecutive year, reflecting low growth in prices of foreign inputs and a cooling of domestic demand due to a restrictive CNB monetary policy stance. Subdued domestic economic activity causing a decline in the profit margins of producers and retailers led to slightly slower growth in goods prices. Growth in services prices also eased marginally but remains elevated. Within services prices, the growth in imputed rent remained low due to an only gradual recovery on the property market.
The year-on-year decrease in food prices deepened in March due to declining global agricultural commodity prices and domestic agricultural producer prices. Subdued consumer demand for food acted in the same direction. The increase in fuel prices picked up pace in March, driven by continued growth in oil prices on global markets and a weaker koruna. Year-on-year growth in administered prices accelerated slightly in March, due to an increase in the price of the road toll vignette.
In month-on-month terms, the price level rose only marginally (by 0.1%) in March. The intensity of the repricing of goods and services in Q1 was below the assumptions of the winter forecast. According to the forecast, inflation will be close to the 2% target throughout this year.
Petr Král, Executive Director, Monetary Department