CNB Bank Board member Miroslav Hrnčíř comments on the May 2000 inflation figures
8.6.2000
The May consumer price indices signal that the price level continues to be consistent with the
CNB's expectations. Stabilisation of price indices at a low inflation level has been confirmed.
Moderate month-on-month price movement was recorded basically for only two items. These,
however, are of a specific nature. The main factor is the response of fuel prices to the rise in
oil prices on world markets. The recent upturn in oil prices passed through into the fuel price
index to some extent in May. However, these data do not yet include the end-May trend.
The second factor is food prices, a traditionally volatile and difficult-to-predict item, where
we are seeing a combination of the customary seasonal influences with time lags and one-time
factors. In this regard, the month-on-month change in food prices in May was strongly affected by
the switch to new potatoes, accompanied by a rise in their price level of more than 30%.
The above factors underlying the price index movements in May do not change the characteristics
of this year's expected price trend. The inflation risks on the demand side continue to be very
subdued and, according to our forecasts, will remain so in principle in future months.
CNB Bank Board member Miroslav Hrnčíř comments on the May 2000 inflation figures
The May consumer price indices signal that the price level continues to be consistent with the CNB's expectations. Stabilisation of price indices at a low inflation level has been confirmed.
Moderate month-on-month price movement was recorded basically for only two items. These, however, are of a specific nature. The main factor is the response of fuel prices to the rise in oil prices on world markets. The recent upturn in oil prices passed through into the fuel price index to some extent in May. However, these data do not yet include the end-May trend.
The second factor is food prices, a traditionally volatile and difficult-to-predict item, where we are seeing a combination of the customary seasonal influences with time lags and one-time factors. In this regard, the month-on-month change in food prices in May was strongly affected by the switch to new potatoes, accompanied by a rise in their price level of more than 30%.
The above factors underlying the price index movements in May do not change the characteristics of this year's expected price trend. The inflation risks on the demand side continue to be very subdued and, according to our forecasts, will remain so in principle in future months.
Responsible:
Milan Tománek
CNB spokesman