The CNB comments on the June 2003 inflation figures
8.7.2003
In general, consumer price inflation in June deviated downwards from the CNB's forecast for
April, however it showed mixed developments in individual price groups. Food prices were broadly in
line with the seasonal trend, however their faster-than-predicted growth was due to the current
very volatile rise in potato prices.
The trend in other price groups (as in the previous two months) was weaker relative to the
forecast. The main reasons for this divergence were as follows:
prices of foreign package holidays which did not show a marked seasonal rise in summer months
but were flat, reflecting both valuation changes and a global decline in interest in travel;
the 5% appreciation of the koruna-US dollar exchange rate against the forecast;
the ongoing low-inflation environment reflecting non-inflationary economic growth rate and only
gradually unwinding effect of domestic and foreign cost effects.
The CNB comments on the June 2003 inflation figures
In general, consumer price inflation in June deviated downwards from the CNB's forecast for April, however it showed mixed developments in individual price groups. Food prices were broadly in line with the seasonal trend, however their faster-than-predicted growth was due to the current very volatile rise in potato prices.
The trend in other price groups (as in the previous two months) was weaker relative to the forecast. The main reasons for this divergence were as follows:
Alice Frisaufova, CNB spokesperson