CNB Vice-Governor Oldřich Dědek comments on the August 2001 inflation figures
10.9.2001
The August inflation data, which replaced the series of unfavourable figures from the previous
three months, have been a rather pleasant surprise for the CNB. Not only are the figures themselves
favourable, but the released data are also favourable in terms of the current inflationary nature
which mainly attributes the past excessive increase in the consumer price level to individual
fluctuations and temporary cost-push shocks (volatile price developments of food and fuels) which
are presently fading away. At the same time, the general price increase drawn by the recovery of
demand cannot be identified in a demonstrable way. Conversely, most of the consumer basket segments
show stagnation or a moderate decline in month-on-month terms.
Nevertheless, the CNB is aware that maintaining the aforementioned view of current inflation
requires that consistent attention be paid to the existing inflation risks. These risks consist
mainly in very lax budgetary policy and the threat of an excessive rise in wage demands in relation
to the desirable future inflation trend.
CNB Vice-Governor Oldřich Dědek comments on the August 2001 inflation figures
The August inflation data, which replaced the series of unfavourable figures from the previous three months, have been a rather pleasant surprise for the CNB. Not only are the figures themselves favourable, but the released data are also favourable in terms of the current inflationary nature which mainly attributes the past excessive increase in the consumer price level to individual fluctuations and temporary cost-push shocks (volatile price developments of food and fuels) which are presently fading away. At the same time, the general price increase drawn by the recovery of demand cannot be identified in a demonstrable way. Conversely, most of the consumer basket segments show stagnation or a moderate decline in month-on-month terms.
Nevertheless, the CNB is aware that maintaining the aforementioned view of current inflation requires that consistent attention be paid to the existing inflation risks. These risks consist mainly in very lax budgetary policy and the threat of an excessive rise in wage demands in relation to the desirable future inflation trend.
Responsible:
Alice Frišaufová
CNB Spokesperson