The CNB comments on the April 2007 inflation figures
Inflation above CNB forecast
According to figures released today, annual inflation increased from 1.9% in March to 2.5% in
April this year. This means that it is in the lower half of the tolerance band set by the CNB
around its target of 3%.
In month-on-month terms the price level rose by 0.7% in April, due chiefly to a rise in food and
fuel prices and the lagged price impact of changes to indirect taxes on tobacco products in April
last year and March this year. Increases in regulated prices of medicines, natural gas, heat and
rents had the same upward effect on the price level. Prices of clothing and footwear rose as well,
owing to a rise in prices of new seasonal models. Prices in the holiday segment moved in the
opposite direction in April, recording a seasonal decline as in past years.
Annual inflation in April 2007 was approximately 0.4 percentage point higher than the April CNB
forecast. According to preliminary calculations, the most significant upward deviation from the
forecast occurred for food prices. Regulated prices and, to a lesser extent, adjusted inflation
excluding fuels also rose faster than forecasted. Adjusted inflation is still low, however,
suggesting that the current inflation pressures from the real economy remain moderate.
Tomáš Holub, Executive Director, Monetary and Statistics Department
The CNB comments on the April 2007 inflation figures
Inflation above CNB forecast
According to figures released today, annual inflation increased from 1.9% in March to 2.5% in April this year. This means that it is in the lower half of the tolerance band set by the CNB around its target of 3%.
In month-on-month terms the price level rose by 0.7% in April, due chiefly to a rise in food and fuel prices and the lagged price impact of changes to indirect taxes on tobacco products in April last year and March this year. Increases in regulated prices of medicines, natural gas, heat and rents had the same upward effect on the price level. Prices of clothing and footwear rose as well, owing to a rise in prices of new seasonal models. Prices in the holiday segment moved in the opposite direction in April, recording a seasonal decline as in past years.
Annual inflation in April 2007 was approximately 0.4 percentage point higher than the April CNB forecast. According to preliminary calculations, the most significant upward deviation from the forecast occurred for food prices. Regulated prices and, to a lesser extent, adjusted inflation excluding fuels also rose faster than forecasted. Adjusted inflation is still low, however, suggesting that the current inflation pressures from the real economy remain moderate.
Tomáš Holub, Executive Director, Monetary and Statistics Department