The CNB comments on the January 2003 inflation figures

10.2.2003

 

Month-on-month seasonally affected consumer price inflation in January 2003 was considerably lower than in January in previous years, which is in line with the CNB´s January forecast. This fed through into the first-ever annual price decline since the price liberalisation. This is chiefly attributable to the excess supply on the strongly competitive food and clothing market, the continuing effect of external cost factors including the koruna exchange rate in the last year, the extremely weak regulated price growth and weak inflation expectations bolstered by past inflation developments. The CNB expects the renewed rise in annual inflation in Q2 this year.

Alice Frišaufová
CNB spokesperson