The CNB comments on the December 2010 inflation figures
Inflation comes in slightly above CNB forecast in December 2010
According to figures released today, the price level increased by 2.3% year on year in December 2010. In line with the CNB’s expectations, headline inflation thus increased compared to November and stands slightly above the CNB’s inflation target. Monetary-policy relevant inflation, i.e. inflation adjusted for the first-round effects of changes to indirect taxes, recorded a similar increase. At 1.2% in December, it was in the lower half of the tolerance band around the inflation target.
Annual headline inflation was 0.1 percentage point higher in December 2010 than the CNB’s current forecast. The deviation of the actual figure from the forecast was due mainly to higher-than-expected growth in fuel prices, reflecting oil price growth on world markets. By contrast, the CNB had expected a slightly higher contribution of food and regulated price growth to inflation than was reported. Annual adjusted inflation excluding fuels was in line with the forecast.
The December data showed that annual headline inflation was – in line with the CNB’s forecast – close to the inflation target at the end of 2010. According to the CNB’s forecast, headline inflation should stay very close to the target over the coming two years. In the first half of 2011, monetary-policy relevant inflation will also converge to the CNB’s inflation target.
Tomáš Holub, Executive Director, Monetary and Statistics Department
The CNB comments on the December 2010 inflation figures
Inflation comes in slightly above CNB forecast in December 2010
According to figures released today, the price level increased by 2.3% year on year in December 2010. In line with the CNB’s expectations, headline inflation thus increased compared to November and stands slightly above the CNB’s inflation target. Monetary-policy relevant inflation, i.e. inflation adjusted for the first-round effects of changes to indirect taxes, recorded a similar increase. At 1.2% in December, it was in the lower half of the tolerance band around the inflation target.
Annual headline inflation was 0.1 percentage point higher in December 2010 than the CNB’s current forecast. The deviation of the actual figure from the forecast was due mainly to higher-than-expected growth in fuel prices, reflecting oil price growth on world markets. By contrast, the CNB had expected a slightly higher contribution of food and regulated price growth to inflation than was reported. Annual adjusted inflation excluding fuels was in line with the forecast.
The December data showed that annual headline inflation was – in line with the CNB’s forecast – close to the inflation target at the end of 2010. According to the CNB’s forecast, headline inflation should stay very close to the target over the coming two years. In the first half of 2011, monetary-policy relevant inflation will also converge to the CNB’s inflation target.
Tomáš Holub, Executive Director, Monetary and Statistics Department