CNB Vice-Governor Oldřich Dědek comments on the October 2001 inflation figures
8.11.2001
The price developments in October were basically in line with the CNB's predictions. Food prices
were something of an exception, with the fall in their annual growth relative to the September
outturn being rather larger than expected. The declining consumer price index outturns observed
over the past three months have largely eliminated the price swing recorded in April - July, which
had raised concerns about a change in trend towards a pick-up in inflation. The annual net
inflation outturn in October (2.7%) was even slightly below the level reached before the upsurge in
prices. This result signals a high probability of the inflation target for 2001 being hit. The
predictions of a calming of the price level, confirming the exceptionality of the price swing
(caused by one-off shocks chiefly of a cost and seasonal nature), are being confirmed
unequivocally. These developments give no reason for any reassessment of the current inflation
forecast or for any change in view regarding the macroeconomic situation even at the longer-term
horizon of monetary policy effect.
CNB Vice-Governor Oldřich Dědek comments on the October 2001 inflation figures
The price developments in October were basically in line with the CNB's predictions. Food prices were something of an exception, with the fall in their annual growth relative to the September outturn being rather larger than expected. The declining consumer price index outturns observed over the past three months have largely eliminated the price swing recorded in April - July, which had raised concerns about a change in trend towards a pick-up in inflation. The annual net inflation outturn in October (2.7%) was even slightly below the level reached before the upsurge in prices. This result signals a high probability of the inflation target for 2001 being hit. The predictions of a calming of the price level, confirming the exceptionality of the price swing (caused by one-off shocks chiefly of a cost and seasonal nature), are being confirmed unequivocally. These developments give no reason for any reassessment of the current inflation forecast or for any change in view regarding the macroeconomic situation even at the longer-term horizon of monetary policy effect.
Responsible:
Alice Frišaufová
CNB Spokesperson