CNB Vice-Governor Oldřich Dědek comments on the March 2001 inflation figures
9.4.2001
The figures on consumer prices and net inflation in March support the CNB's assumptions of
maintaining the low-inflation environment. Net inflation, which is the relevant indicator for
monetary policy decisions, stagnated in month-on-month comparison and was 2.9% in year-on-year
terms in March. The broader price aggregate of consumer prices showed only very modest
month-on-month growth of 0.1%, and the year-on-year index rose by the same amount. The continuing
decline in fuel prices had a favourable downward effect on inflation.
It is becoming apparent that in a phase of a faster-than-expected revival of the economy,
inflationary factors may be under control. The strongly competitive environment, the oil price
stabilisation, the koruna's appreciation against the euro and the calming of the situation on the
retail food market are continuing to play a key role.
The nature of the price movement thus followed the positive trend recorded in the previous three
quarters and hence confirmed that the CNB's February monetary policy decision to lower rates, which
was based on a favourable forecast for future inflation, had been justified.
Responsible: Pavel Zúbek, Public Relations Division
CNB Vice-Governor Oldřich Dědek comments on the March 2001 inflation figures
The figures on consumer prices and net inflation in March support the CNB's assumptions of maintaining the low-inflation environment. Net inflation, which is the relevant indicator for monetary policy decisions, stagnated in month-on-month comparison and was 2.9% in year-on-year terms in March. The broader price aggregate of consumer prices showed only very modest month-on-month growth of 0.1%, and the year-on-year index rose by the same amount. The continuing decline in fuel prices had a favourable downward effect on inflation.
It is becoming apparent that in a phase of a faster-than-expected revival of the economy, inflationary factors may be under control. The strongly competitive environment, the oil price stabilisation, the koruna's appreciation against the euro and the calming of the situation on the retail food market are continuing to play a key role.
The nature of the price movement thus followed the positive trend recorded in the previous three quarters and hence confirmed that the CNB's February monetary policy decision to lower rates, which was based on a favourable forecast for future inflation, had been justified.
Responsible:
Pavel Zúbek, Public Relations Division