The CNB comments on the April 2005 inflation figures
Inflation in April influenced by higher oil prices
According to data released today, annual consumer price inflation increased slightly in April by
comparison with March, reaching 1.6%. This result is in line with the CNB's new forecast, which
expected annual inflation of 1.5% in April. The domestic price environment can thus be still
regarded as a low-inflation one.
The month-on-month inflation of 0.1% was due to a marked rise in fuel prices, which was only
partly offset by cheaper package holidays, food and non-alcoholic beverages. The fuel price growth
was higher than predicted in the CNB's forecast, whereas the growth in the prices of food and other
items of the consumer basket was in line with the forecast.
The April figures confirm the message of the CNB's new forecast, which indicates inflation below
the CNB's inflation target throughout 2005. Fuel prices increased in April as a result of the
higher oil prices recently, but their impact on the general price level is still being offset by
the absence of demand-pull inflationary pressures in the Czech economy.
Tomáš Holub Executive Director, Monetary and Statistics Department
The CNB comments on the April 2005 inflation figures
Inflation in April influenced by higher oil prices
According to data released today, annual consumer price inflation increased slightly in April by comparison with March, reaching 1.6%. This result is in line with the CNB's new forecast, which expected annual inflation of 1.5% in April. The domestic price environment can thus be still regarded as a low-inflation one.
The month-on-month inflation of 0.1% was due to a marked rise in fuel prices, which was only partly offset by cheaper package holidays, food and non-alcoholic beverages. The fuel price growth was higher than predicted in the CNB's forecast, whereas the growth in the prices of food and other items of the consumer basket was in line with the forecast.
The April figures confirm the message of the CNB's new forecast, which indicates inflation below the CNB's inflation target throughout 2005. Fuel prices increased in April as a result of the higher oil prices recently, but their impact on the general price level is still being offset by the absence of demand-pull inflationary pressures in the Czech economy.
Tomáš Holub
Executive Director, Monetary and Statistics Department