CNB Vice-Governor Oldřich Dědek comments on the September 2001 inflation figures
8.10.2001
Both headline and net inflation substantially fell in September compared with previous months as
well as with the CNB expectations. Thereby, price developments continued their calming trend. Net
inflation dropped to a level near the middle of the target band for the end of this year.
The September fall in inflation is mostly attributable to the same items (food and recreation
prices) which were behind the extraordinary rise seen in May to July. Therefore, it is still true
that overall price movements, both downward and upward, are affected primarily by sizeable price
changes in a relatively narrow segment of goods and services. The fact that after these excessive
elements are eliminated the remaining segments of the consumer basket have not yet shown any signs
of inflation acceleration testifies to this observation.
Despite the present positive trend in inflation, the CNB is still aware of the risk of
increasing inflationary pressures ensuing primarily from the lax budgetary policy and accelerated
wage developments.
CNB Vice-Governor Oldřich Dědek comments on the September 2001 inflation figures
Both headline and net inflation substantially fell in September compared with previous months as well as with the CNB expectations. Thereby, price developments continued their calming trend. Net inflation dropped to a level near the middle of the target band for the end of this year.
The September fall in inflation is mostly attributable to the same items (food and recreation prices) which were behind the extraordinary rise seen in May to July. Therefore, it is still true that overall price movements, both downward and upward, are affected primarily by sizeable price changes in a relatively narrow segment of goods and services. The fact that after these excessive elements are eliminated the remaining segments of the consumer basket have not yet shown any signs of inflation acceleration testifies to this observation.
Despite the present positive trend in inflation, the CNB is still aware of the risk of increasing inflationary pressures ensuing primarily from the lax budgetary policy and accelerated wage developments.
Responsible:
Alice Frišaufová
CNB Spokesperson