The CNB comments on the July 2004 inflation figures

9.8.2004

 

Price developments in July in line with the CNB's forecast

The beginning of holidays is always marked by strong seasonal factors: holiday prices rise, while food prices decline. In July, the statistics regularly reflect the more expensive holidays of the main summer season. On the other hand, food prices usually decrease owing to an increasing availability of new potatoes as well as temperate zone vegetables and fruits.

In July, consumer prices rose by 3.2% overall. Inflation thus conforms to the CNB's forecast and continues to grow moderately within the band defined by the bank's inflation target.

Although the CNB's inflation forecast was exact on the whole, some individual items recorded small deviations. The monthly decline in food prices was lower than expected. Fuel prices, on the other hand, decrease in comparison with June despite the recent increase in oil prices. Market prices of goods and services excluding food and fuels, regulated prices and the impacts of tax changes were broadly consistent with the forecast.

Petr Vojtíšek, Monetary and Statistics Department