CNB Vice-Governor Oldřich Dědek comments on the June 2001 inflation figures
11.7.2001
The June inflation figures show that for the third consecutive month price growth was faster
than the CNB had predicted. However, the structure of the rise in prices shows the dominant effect
of three items (food, transport and recreation). The traditionally volatile food prices reflect
buoyant seasonal growth in the selected items against a background of persisting relatively fast
growth in agricultural producer prices. The influence of cost factors connected with high oil
prices and the strong dollar is passing through into growth in prices in the transport and
recreation groups. On the other hand, the moderate-to-flat price movements in the other segments of
the consumer basket do not correspond to the accelerating demand pressures generated by the
stronger economic recovery. Nevertheless, going forward it is necessary to reckon on the
macroeconomic framework of economic growth creating room for a larger weight of demand-pull
inflation and for a less effective curbing of cost-push inflation.
CNB Vice-Governor Oldřich Dědek comments on the June 2001 inflation figures
The June inflation figures show that for the third consecutive month price growth was faster than the CNB had predicted. However, the structure of the rise in prices shows the dominant effect of three items (food, transport and recreation). The traditionally volatile food prices reflect buoyant seasonal growth in the selected items against a background of persisting relatively fast growth in agricultural producer prices. The influence of cost factors connected with high oil prices and the strong dollar is passing through into growth in prices in the transport and recreation groups. On the other hand, the moderate-to-flat price movements in the other segments of the consumer basket do not correspond to the accelerating demand pressures generated by the stronger economic recovery. Nevertheless, going forward it is necessary to reckon on the macroeconomic framework of economic growth creating room for a larger weight of demand-pull inflation and for a less effective curbing of cost-push inflation.
Responsible:
Alice Frišaufová
CNB Spokesperson