The CNB comments on the January 2006 inflation figures
Inflation in line with CNB forecast
According to figures released today, annual inflation picked up to 2.9% in January, from 2.2% in
December last year. This took it close to the CNB's target of 3%.
The month-on-month changes in the prices of numerous consumer basket items reflected the
traditional seasonality and usual repricing in January. Major price movements were therefore
recorded, inter alia, for some items under food, holidays and health care. Inflation was affected
most strongly by regulated prices of energy, which reflected - with a lag - the movements in prices
of energy-producing materials on world markets, as well as prices of some other housing-related
services. By contrast, the continuing decrease in fuel prices acted towards lower inflation.
Annual inflation was 0.1 percentage point above the CNB's current forecast. This deviation can
be assessed as very small, as the forecast for January inflation is always connected with somewhat
greater uncertainty than in other months. Food prices, in particular, were slightly lower than
predicted. Conversely, growth in regulated prices and adjusted inflation excluding fuels seemed to
be slightly higher than forecasted. However, the latter remains low and is so far showing no signs
of demand-pull inflationary pressures emerging.
Tomáš Holub
Executive Director, Monetary and Statistics Department
The CNB comments on the January 2006 inflation figures
Inflation in line with CNB forecast
According to figures released today, annual inflation picked up to 2.9% in January, from 2.2% in December last year. This took it close to the CNB's target of 3%.
The month-on-month changes in the prices of numerous consumer basket items reflected the traditional seasonality and usual repricing in January. Major price movements were therefore recorded, inter alia, for some items under food, holidays and health care. Inflation was affected most strongly by regulated prices of energy, which reflected - with a lag - the movements in prices of energy-producing materials on world markets, as well as prices of some other housing-related services. By contrast, the continuing decrease in fuel prices acted towards lower inflation.
Annual inflation was 0.1 percentage point above the CNB's current forecast. This deviation can be assessed as very small, as the forecast for January inflation is always connected with somewhat greater uncertainty than in other months. Food prices, in particular, were slightly lower than predicted. Conversely, growth in regulated prices and adjusted inflation excluding fuels seemed to be slightly higher than forecasted. However, the latter remains low and is so far showing no signs of demand-pull inflationary pressures emerging.
Tomáš Holub
Executive Director, Monetary and Statistics Department