The CNB comments on the August 2006 inflation figures
Inflation slightly exceeds CNB forecast
According to figures released today, annual inflation edged up from 2.9% in July to 3.1% in
August. Inflation has thus been fluctuating very close to the CNB's 3% target all year.
In month-on-month terms, the price level increased by 0.2 percentage point in August. As in the
previous month, inflation was affected by some seasonal movements, in particular a rise in package
holiday prices and a contrary seasonal decline in prices of footwear, clothing and some foods. A
reduction in VAT on coffee, tea and confectionery also had a downward effect on food prices. The
increase in bread prices conversely continued. There was also a slight rise in fuel and
telecommunication services prices. Prices in the health category increased more markedly.
The annual inflation figure is 0.2 percentage point above the CNB's July forecast. In contrast
to the forecast, the April excise duty increase has yet to pass through to tobacco product prices.
Regulated prices were in line with the forecast. The largest source of the deviation from the
forecast is a faster upturn in food prices than forecasted by the CNB. The higher-than-forecasted
inflation was also due to higher fuel prices and, according to preliminary calculations, to
adjusted inflation excluding fuels.
Tomáš Holub
Executive Director, Monetary and Statistics Department
The CNB comments on the August 2006 inflation figures
Inflation slightly exceeds CNB forecast
According to figures released today, annual inflation edged up from 2.9% in July to 3.1% in August. Inflation has thus been fluctuating very close to the CNB's 3% target all year.
In month-on-month terms, the price level increased by 0.2 percentage point in August. As in the previous month, inflation was affected by some seasonal movements, in particular a rise in package holiday prices and a contrary seasonal decline in prices of footwear, clothing and some foods. A reduction in VAT on coffee, tea and confectionery also had a downward effect on food prices. The increase in bread prices conversely continued. There was also a slight rise in fuel and telecommunication services prices. Prices in the health category increased more markedly.
The annual inflation figure is 0.2 percentage point above the CNB's July forecast. In contrast to the forecast, the April excise duty increase has yet to pass through to tobacco product prices. Regulated prices were in line with the forecast. The largest source of the deviation from the forecast is a faster upturn in food prices than forecasted by the CNB. The higher-than-forecasted inflation was also due to higher fuel prices and, according to preliminary calculations, to adjusted inflation excluding fuels.
Tomáš Holub
Executive Director, Monetary and Statistics Department