The CNB comments on the February 2005 inflation figures
Low-inflation environment persists
According to figures released today, consumer prices increased by 1.7 % year on year in February
this year, the same as in January. The CNB´s forecast that annual inflation will be just below the
2% level in the first half of this year continues to hold.
By comparison with January, the price level increased by slightly more than the CNB had
forecasted. Food prices in particular deviated upwards from the forecast, remaining flat instead of
showing the predicted moderate seasonal decline. The lower-than-expected food price inflation in
January was thus partly offset. This confirms the traditionally high volatility of food prices. The
decline in fuel prices in February was more pronounced than had been forecasted.
In general it can be stated that annual inflation remains slightly below the CNB´s forecast,
although this deviation narrowed somewhat compared to January. The latest data indicate a
persisting low-inflation environment and the absence of demand-pull inflationary pressures in the
Czech economy.
Tomáš Holub Executive Director, Monetary and Statistics Department
The CNB comments on the February 2005 inflation figures
Low-inflation environment persists
According to figures released today, consumer prices increased by 1.7 % year on year in February this year, the same as in January. The CNB´s forecast that annual inflation will be just below the 2% level in the first half of this year continues to hold.
By comparison with January, the price level increased by slightly more than the CNB had forecasted. Food prices in particular deviated upwards from the forecast, remaining flat instead of showing the predicted moderate seasonal decline. The lower-than-expected food price inflation in January was thus partly offset. This confirms the traditionally high volatility of food prices. The decline in fuel prices in February was more pronounced than had been forecasted.
In general it can be stated that annual inflation remains slightly below the CNB´s forecast, although this deviation narrowed somewhat compared to January. The latest data indicate a persisting low-inflation environment and the absence of demand-pull inflationary pressures in the Czech economy.
Tomáš Holub
Executive Director, Monetary and Statistics Department