The CNB comments on the August 2004 inflation figures
8.9.2004
Consumer prices enjoy a quiet summer
According to the findings of the Czech Statistical Office, prices were 3.4% higher overall in
August 2004 than a year earlier. As in July, this bears out the CNB's forecast that inflation would
fluctuate near the centre of the CNB's inflation target in the second half of this year.
Current price developments can best be judged from month-on-month changes in prices. Prices of
consumer goods and services were broadly unchanged from July, in line with the CNB's latest
forecast published in the July Inflation Report. A calm overall price level often conceals contrary
movements in different parts of the consumer basket, but the August figures indicate relative quiet
even at closer inspection. Food prices repeated their July month-on-month fall. This is typical of
the summer months. The slight decline in regulated prices relative to July was due primarily to a
reduction of the residential landline installation fee.
Fuel prices recorded a slight month-on-month rise, whereas the forecast had been for a decline.
This deviation, however, lies within the scope of the usual month-on-month fuel price swings. The
slight rise shown by the remaining items of the consumer basket, grouped under adjusted inflation,
was in line with the CNB's expectations.
Tomáš Holub, Executive Director of the CNB Monetary and Statistics Department
The CNB comments on the August 2004 inflation figures
Consumer prices enjoy a quiet summer
According to the findings of the Czech Statistical Office, prices were 3.4% higher overall in August 2004 than a year earlier. As in July, this bears out the CNB's forecast that inflation would fluctuate near the centre of the CNB's inflation target in the second half of this year.
Current price developments can best be judged from month-on-month changes in prices. Prices of consumer goods and services were broadly unchanged from July, in line with the CNB's latest forecast published in the July Inflation Report. A calm overall price level often conceals contrary movements in different parts of the consumer basket, but the August figures indicate relative quiet even at closer inspection. Food prices repeated their July month-on-month fall. This is typical of the summer months. The slight decline in regulated prices relative to July was due primarily to a reduction of the residential landline installation fee.
Fuel prices recorded a slight month-on-month rise, whereas the forecast had been for a decline. This deviation, however, lies within the scope of the usual month-on-month fuel price swings. The slight rise shown by the remaining items of the consumer basket, grouped under adjusted inflation, was in line with the CNB's expectations.
Tomáš Holub, Executive Director of the CNB Monetary and Statistics Department