The CNB comments on the November 2006 inflation figures

Inflation comes in below the CNB's November forecast

According to figures released today, annual inflation edged up to 1.5% in November 2006 from 1.3% in October. It is thus gradually returning to the CNB's target of 3%.
 
In month-on-month terms, the price level fell by 0.1 percentage point in October. The primary factor was a decline in fuel prices combined with a subsiding seasonal decline in package holiday prices. Significant seasonal price growth was recorded only for clothing and footwear. Prices of food commodities recorded movements in both directions, but overall they rose only negligibly.

In comparison with the CNB's current forecast, prepared in October this year, the November annual inflation outturn is 0.4-0.5 percentage point lower. Relative to the October inflation figures, the deviation from the forecast thus increased a little. This deviation was again due in roughly equal measure to food prices and adjusted inflation excluding fuels. Year-on-year growth in both these price categories is below the 1 percentage point level. However, slight downward deviations from the forecast were also seen for fuel prices and for the effects of the changes made to indirect taxes in April this year, which have moved further into the future.

 

Tomáš Holub
Executive Director, Monetary and Statistics Department