The Statement of Vice-Governor Zdeněk Tůma on Inflation in October
8.11.1999
"Inflation expectations are more important than the momentary value. Of exceptional significance
is the balanced trend in virtually all price circles.
"For CNB decision-making, the trend in inflation expectations is of primary significance. In
this sense, we view the October rise in the price level positively, since a stabilisation of
inflation expectations at a low level is gradually being confirmed. The balanced price trend in the
entire basket, with only prices for transport and for leisure deviating, also testifies to this. On
the other hand, this favourable price trend may be a cause for concern, as it pushes us further
towards, or even below, the lower limit of our target for the end of 2000. This target is still
authoritative for us, but we will not try to achieve it at any cost, i.e. at the cost of
fluctuations in interest rates, the exchange rate and inflationary expectations, which would
eventually feed through negatively into the real economy," said Vice-Governor Zdeněk Tůma,
commenting on the just-published Inflation Report for October.
The Statement of Vice-Governor Zdeněk Tůma on Inflation in October
"Inflation expectations are more important than the momentary value. Of exceptional significance is the balanced trend in virtually all price circles.
"For CNB decision-making, the trend in inflation expectations is of primary significance. In this sense, we view the October rise in the price level positively, since a stabilisation of inflation expectations at a low level is gradually being confirmed. The balanced price trend in the entire basket, with only prices for transport and for leisure deviating, also testifies to this. On the other hand, this favourable price trend may be a cause for concern, as it pushes us further towards, or even below, the lower limit of our target for the end of 2000. This target is still authoritative for us, but we will not try to achieve it at any cost, i.e. at the cost of fluctuations in interest rates, the exchange rate and inflationary expectations, which would eventually feed through negatively into the real economy," said Vice-Governor Zdeněk Tůma, commenting on the just-published Inflation Report for October.
CNB - Public Relations Division