The CNB comments on the March 2003 inflation figures

In March 2003, both month-on-month and year-on-year consumer price inflation was slightly below the level predicted by the CNB in the first situational report published in January this year. The traditionally volatile food prices played the dominant role in this deviation. The larger-than-expected fall in food prices is in line with the continuing pronounced annual decline in agricultural producer prices. The annual decline in the overall price level was also attributable to decreases in the clothing and footwear category and, within the regulated items, also to the evolution of natural gas and electricity prices. By contrast, the high fuel price inflation, affecting prices in the transport category, had pro-inflationary effects. This trend reflected the growth in the oil price on world markets in recent months. Inflation adjusted for regulated prices and food and fuel prices was in line with the above prediction. The CNB still expects an upturn in annual inflation in Q2 and a return to the inflation target band at the end of 2003.

Alice Frišaufová
CNB spokesperson