The CNB comments on the December 2004 inflation figures
Inflation remains moderate
According to figures released today, consumer prices were up by 2.8% year on year at the end of
2004. This outturn is broadly in line with the CNB's forecast published in October 2004. There
were, however, some deviations from the forecast within the inflation structure.
The prices of most goods and services remained almost unchanged in December 2004 compared to the
previous month. Inflation was thus determined by only two important (and traditionally volatile)
categories: food and fuel prices. Prices of fruit and vegetables recorded particularly strong
growth. In contrast, other major food categories showed declines due, among other things, to last
year's good harvest and the appreciation of the koruna. Fuel prices dropped, owing to the decrease
in oil prices on world markets and the appreciation of the koruna against the dollar.
Year-on-year growth in food prices remains higher than forecasted in October. However, this
growth is being offset by the quite favourable evolution of fuel prices and partly also by slower
growth in the prices of other goods and services. This confirms that demand-side developments in
the economy can be assessed as non-inflationary.
Tomáš Holub
Executive Director, Monetary and Statistics Department
The CNB comments on the December 2004 inflation figures
Inflation remains moderate
According to figures released today, consumer prices were up by 2.8% year on year at the end of 2004. This outturn is broadly in line with the CNB's forecast published in October 2004. There were, however, some deviations from the forecast within the inflation structure.
The prices of most goods and services remained almost unchanged in December 2004 compared to the previous month. Inflation was thus determined by only two important (and traditionally volatile) categories: food and fuel prices. Prices of fruit and vegetables recorded particularly strong growth. In contrast, other major food categories showed declines due, among other things, to last year's good harvest and the appreciation of the koruna. Fuel prices dropped, owing to the decrease in oil prices on world markets and the appreciation of the koruna against the dollar.
Year-on-year growth in food prices remains higher than forecasted in October. However, this growth is being offset by the quite favourable evolution of fuel prices and partly also by slower growth in the prices of other goods and services. This confirms that demand-side developments in the economy can be assessed as non-inflationary.
Tomáš Holub
Executive Director, Monetary and Statistics Department