The CNB comments on the July 2003 inflation figures
8.8.2003
The monthly rise in consumer price inflation of 0.1% recorded in July is in line with the CNB's
July forecast. In annual comparison, a renewed weak rise in inflation of 0.3% in June was replaced
again by a decline of 0.1%. The current low-inflation environment is due mainly to extremely low
growth in regulated prices, weak inflation expectations (fostered by the past inflation profile),
excess supply on the strongly competitive tradables market and unwinding anti-inflationary effect
of external cost factors, including the exchange rate. The CNB expects an upturn in annual
inflation in the course of the second half of this year.
The CNB comments on the July 2003 inflation figures
The monthly rise in consumer price inflation of 0.1% recorded in July is in line with the CNB's July forecast. In annual comparison, a renewed weak rise in inflation of 0.3% in June was replaced again by a decline of 0.1%. The current low-inflation environment is due mainly to extremely low growth in regulated prices, weak inflation expectations (fostered by the past inflation profile), excess supply on the strongly competitive tradables market and unwinding anti-inflationary effect of external cost factors, including the exchange rate. The CNB expects an upturn in annual inflation in the course of the second half of this year.
Pavel Zúbek, CNB communications division