CNB Vice-Governor Oldřich Dědek comments on the December inflation figures
9.1.2001
In December, prices did not depart from the trend of stable inflation of around 4% observed
throughout the second half of last year. The overall month-on-month increase in consumer prices of
0.2% was generated largely by rising food prices. However, this price movement did not differ from
the usual seasonality. In contrast, the rise in inflation was held back by a decrease in fuel
prices resulting from the sizeable fall in oil prices on world markets.
The latest developments again confirm that cost-push inflationary pressures are very weak. The
low-inflation environment is also due to the koruna's exchange rate, the strong influence of the
competitive market and only moderately rising consumer demand.
The month-on-month developments in the net inflation segment, which is decisive for the CNB's
monetary policy considerations, were also in line with expectations. Therefore, they give no
grounds for any fundamental change of view with respect to either the nature of the price movements
or the effects of inflationary factors in the near future.
CNB Vice-Governor Oldřich Dědek comments on the December inflation figures
In December, prices did not depart from the trend of stable inflation of around 4% observed throughout the second half of last year. The overall month-on-month increase in consumer prices of 0.2% was generated largely by rising food prices. However, this price movement did not differ from the usual seasonality. In contrast, the rise in inflation was held back by a decrease in fuel prices resulting from the sizeable fall in oil prices on world markets.
The latest developments again confirm that cost-push inflationary pressures are very weak. The low-inflation environment is also due to the koruna's exchange rate, the strong influence of the competitive market and only moderately rising consumer demand.
The month-on-month developments in the net inflation segment, which is decisive for the CNB's monetary policy considerations, were also in line with expectations. Therefore, they give no grounds for any fundamental change of view with respect to either the nature of the price movements or the effects of inflationary factors in the near future.
Responsible:
Milan Tománek, CNB spokesman