The CNB comments on the February 2024 inflation figures
According to figures released today, annual inflation fell to 2% in February 2024. Annual consumer price inflation thus slowed by 0.3 percentage point compared to the previous month. The fall in inflation to the target was due to the CNB’s tight monetary policy and the weak domestic economic activity.
Annual inflation was 0.8 percentage point lower in February than the CNB’s winter forecast. Contrary to the forecast, administered prices slowed more substantially in the first two months of this year. Core inflation was also somewhat lower. A more moderate decline in prices of food, beverages and tobacco had the opposite effect. Contrary to expectations, fuel prices rose slightly.
February 2024
year-on-year in %
MPR Winter 2024
actual value
CPI
2.8
2.0
Administered prices
8.6
6.0
First-round impacts of changes to indirect taxes
0.1
0.0
Adjusted for changes to indirect taxes
Prices of food, beverages, tobacco
-1.8
-1.1
Core inflation
3.5
2.8
Fuel prices
-4.4
0.3
Monetary policy-relevant inflation
2.7
2.0
Core inflation slowed further in February. It has been fading for the second consecutive year, reflecting low growth in prices of foreign inputs and a cooling of domestic demand due to a restrictive monetary policy stance. Subdued economic activity causing a decline in the profit margins of producers and retailers led to slower growth in goods prices. By contrast, growth in services prices remained elevated, due in part to faster growth in imputed rent.
Annual food price inflation remained negative in February due to declining global agricultural commodity prices and domestic agricultural producer prices. Subdued consumer demand for food acted in the same direction. Fuel prices returned to growth in February following several months of decline.
In month-on-month terms, the price level increased by 0.3% in February. The intensity of the usual repricing at the start of the year was below the assumptions of the winter forecast. According to the forecast, inflation will be close to the 2% target throughout 2024.
Petr Král, Executive Director, Monetary Department
Inflation is exactly at the 2% target in February
The CNB comments on the February 2024 inflation figures
According to figures released today, annual inflation fell to 2% in February 2024. Annual consumer price inflation thus slowed by 0.3 percentage point compared to the previous month. The fall in inflation to the target was due to the CNB’s tight monetary policy and the weak domestic economic activity.
Annual inflation was 0.8 percentage point lower in February than the CNB’s winter forecast. Contrary to the forecast, administered prices slowed more substantially in the first two months of this year. Core inflation was also somewhat lower. A more moderate decline in prices of food, beverages and tobacco had the opposite effect. Contrary to expectations, fuel prices rose slightly.
Core inflation slowed further in February. It has been fading for the second consecutive year, reflecting low growth in prices of foreign inputs and a cooling of domestic demand due to a restrictive monetary policy stance. Subdued economic activity causing a decline in the profit margins of producers and retailers led to slower growth in goods prices. By contrast, growth in services prices remained elevated, due in part to faster growth in imputed rent.
Annual food price inflation remained negative in February due to declining global agricultural commodity prices and domestic agricultural producer prices. Subdued consumer demand for food acted in the same direction. Fuel prices returned to growth in February following several months of decline.
In month-on-month terms, the price level increased by 0.3% in February. The intensity of the usual repricing at the start of the year was below the assumptions of the winter forecast. According to the forecast, inflation will be close to the 2% target throughout 2024.
Petr Král, Executive Director, Monetary Department