The CNB comments on the October 2003 inflation figures
10.11.2003
Inflation in October was higher than predicted by the CNB. The deviation was almost exclusively
due to electricity prices, which recorded a much smaller month-on-month decline than predicted in
the October forecast. On the other hand, market prices as a whole were in line with the CNB's
forecast. In this respect, the central bank's view regarding future price movements remains
essentially unchanged.
Within market prices, food prices grew faster than expected, whereas prices of other goods and
services showed slower growth. These deviations, however, are in line with the usual monthly price
volatility. Consumer price inflation is still expected to gradually gather pace. In 2004 it will be
affected by the one-off impact of adjustments to indirect taxes. In 2005 it is expected to ease
back slightly.
The CNB comments on the October 2003 inflation figures
Inflation in October was higher than predicted by the CNB. The deviation was almost exclusively due to electricity prices, which recorded a much smaller month-on-month decline than predicted in the October forecast. On the other hand, market prices as a whole were in line with the CNB's forecast. In this respect, the central bank's view regarding future price movements remains essentially unchanged.
Within market prices, food prices grew faster than expected, whereas prices of other goods and services showed slower growth. These deviations, however, are in line with the usual monthly price volatility. Consumer price inflation is still expected to gradually gather pace. In 2004 it will be affected by the one-off impact of adjustments to indirect taxes. In 2005 it is expected to ease back slightly.
Pavel Zúbek
CNB communications division