CNB Bank Board Member Miroslav Hrnčíř comments on the July inflation figures
8.8.2000
The July inflation figures are basically in line with market expectations. The month-on-month
growth in the price indices for both overall and net inflation was driven by seasonal factors
(higher prices for package holidays, especially abroad), adjustments to regulated prices (rents)
and by a certain continuation of the indirect consequences of the rise in oil prices. It therefore
involves movement in only a certain limited segment of the market, resulting from specific factors,
and not a general inflation movement caused by stronger demand pressures.
Food prices deviated from the CNB's expectations. The month-on-month index was basically flat
amid contrary movements of its individual components. The expected seasonal decline was not as
great as in past years and was offset in particular by the continuing increase in meat and meat
product prices. However, the seasonal factors in the food group have to be assessed in the longer
run, i.e. together with the data for June and in the forthcoming period.
Going forward, the year-on-year and month-on-month indices can be expected to more or less
stabilise. The year-on-year rise in both overall and net inflation should move around the current
level, with only very modest month on-month movement of both indices.
CNB Bank Board Member Miroslav Hrnčíř comments on the July inflation figures
The July inflation figures are basically in line with market expectations. The month-on-month growth in the price indices for both overall and net inflation was driven by seasonal factors (higher prices for package holidays, especially abroad), adjustments to regulated prices (rents) and by a certain continuation of the indirect consequences of the rise in oil prices. It therefore involves movement in only a certain limited segment of the market, resulting from specific factors, and not a general inflation movement caused by stronger demand pressures.
Food prices deviated from the CNB's expectations. The month-on-month index was basically flat amid contrary movements of its individual components. The expected seasonal decline was not as great as in past years and was offset in particular by the continuing increase in meat and meat product prices. However, the seasonal factors in the food group have to be assessed in the longer run, i.e. together with the data for June and in the forthcoming period.
Going forward, the year-on-year and month-on-month indices can be expected to more or less stabilise. The year-on-year rise in both overall and net inflation should move around the current level, with only very modest month on-month movement of both indices.
Responsible:
Milan Tománek
CNB spokesman