The CNB comments on the May 2006 inflation figures
May inflation comes in slightly higher than forecasted
According to figures released today, annual inflation reached 3.1% in May. Inflation thus
remains close to the CNB's 3% target.
In month-on-month terms, the price level increased by 0.5%. This overall rise was due primarily
to higher prices of food, telecommunication services and fuels. The structure of inflation in May
does not indicate any sizeable demand-pull inflationary pressures. Food prices are traditionally
subject to substantial seasonal fluctuations, the rise in telecommunication services prices
resulted from an increase in the regulated monthly flat charges for fixed telephone lines, and the
May rise in fuel prices was due to oil price growth on world markets, which is now gradually
abating.
Annual inflation in May was 0.2 percentage point higher than the April forecast. This deviation
was spread over almost all the forecasted consumer price categories. It was thus due jointly to
higher prices of fuels and food, higher regulated prices and slightly higher adjusted inflation
excluding fuels. A seasonal increase in package holiday prices accounted for much of the rise in
adjusted inflation excluding fuels.
Overall, we can say that despite the slightly higher-than-forecasted inflation outturn, the
figures released today confirm the overall message of the April forecast in the sense of the
non-existence of major demand-pull inflationary pressures.
Petr Vojtíšek, Deputy Executive Director, Monetary and Statistics Department
The CNB comments on the May 2006 inflation figures
May inflation comes in slightly higher than forecasted
According to figures released today, annual inflation reached 3.1% in May. Inflation thus remains close to the CNB's 3% target.
In month-on-month terms, the price level increased by 0.5%. This overall rise was due primarily to higher prices of food, telecommunication services and fuels. The structure of inflation in May does not indicate any sizeable demand-pull inflationary pressures. Food prices are traditionally subject to substantial seasonal fluctuations, the rise in telecommunication services prices resulted from an increase in the regulated monthly flat charges for fixed telephone lines, and the May rise in fuel prices was due to oil price growth on world markets, which is now gradually abating.
Annual inflation in May was 0.2 percentage point higher than the April forecast. This deviation was spread over almost all the forecasted consumer price categories. It was thus due jointly to higher prices of fuels and food, higher regulated prices and slightly higher adjusted inflation excluding fuels. A seasonal increase in package holiday prices accounted for much of the rise in adjusted inflation excluding fuels.
Overall, we can say that despite the slightly higher-than-forecasted inflation outturn, the figures released today confirm the overall message of the April forecast in the sense of the non-existence of major demand-pull inflationary pressures.
Petr Vojtíšek, Deputy Executive Director, Monetary and Statistics Department