The CNB comments on the June 2002 inflation figures
9.7.2002
The figures released confirm the low-inflation trend supported by the koruna´s strong exchange
rate and the non-inflationary nature of economic growth and consumer demand.
The fall in prices in June, leading to a considerable decline in annual inflation, resulted from
a significant drop in food prices which the CNB did not foresee. The developments in this area
during the last two-three months, resulting in the annual decline of approx. 3.0% in food prices in
June, are attributable in principle to two factors. This trend was partly due to a fall in
agriculture producer prices whose impact on food prices was stronger than expected (e.g. marked
seasonal growth in potato prices was replaced by a month-on-month decline).
Developments in the remaining part of the consumer basket in principle did not deviate from the
CNB´s expectations.
The CNB comments on the June 2002 inflation figures
The figures released confirm the low-inflation trend supported by the koruna´s strong exchange rate and the non-inflationary nature of economic growth and consumer demand.
The fall in prices in June, leading to a considerable decline in annual inflation, resulted from a significant drop in food prices which the CNB did not foresee. The developments in this area during the last two-three months, resulting in the annual decline of approx. 3.0% in food prices in June, are attributable in principle to two factors. This trend was partly due to a fall in agriculture producer prices whose impact on food prices was stronger than expected (e.g. marked seasonal growth in potato prices was replaced by a month-on-month decline).
Developments in the remaining part of the consumer basket in principle did not deviate from the CNB´s expectations.
Responsible:
Alice Frišaufová
CNB spokesperson