The CNB comments on the May 2004 inflation figures
8.6.2004
The Czech Statistical Office today published the consumer price inflation figures for May 2004.
The monthly inflation outturn was slightly lower than predicted by the CNB. This divergence chiefly
reflects lower-than-forecasted growth in food prices.
Regulated prices fell in May primarily as a result of the lowering of the basic VAT rate from
22% to 19%. Non-regulated prices in May were also affected by the changes to the VAT Act (in
addition to the lowering of the basic VAT rate, some items were moved between the lower and basic
rate). The main factors underlying the monthly inflation in May were a rise in prices of restaurant
and other services following a VAT increase from 5% to 19%, a rise in cigarette prices following
January's excise duty increase, and a sharp rise in fuel prices.
The CNB comments on the May 2004 inflation figures
The Czech Statistical Office today published the consumer price inflation figures for May 2004. The monthly inflation outturn was slightly lower than predicted by the CNB. This divergence chiefly reflects lower-than-forecasted growth in food prices.
Regulated prices fell in May primarily as a result of the lowering of the basic VAT rate from 22% to 19%. Non-regulated prices in May were also affected by the changes to the VAT Act (in addition to the lowering of the basic VAT rate, some items were moved between the lower and basic rate). The main factors underlying the monthly inflation in May were a rise in prices of restaurant and other services following a VAT increase from 5% to 19%, a rise in cigarette prices following January's excise duty increase, and a sharp rise in fuel prices.
Pavlína Bolfová, CNB Spokeswoman