The CNB comments on the May 2007 inflation figures
Inflation above CNB forecast
According to figures released today, annual inflation decreased from 2.5% in April to 2.4% in
May 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 0.4% in May, due chiefly to a rise in fuel
prices and the price impact of changes to indirect taxes on tobacco products in April last year and
March this year. Increases in regulated rents had the same upward effect on the price level. Food
prices moved in the opposite direction in May, with prices of vegetables and potatoes in particular
recording declines.
Annual inflation in May 2007 was approximately 0.5 percentage point higher than the April CNB
forecast. According to preliminary calculations, the most significant upward deviation from the
forecast occurred for fuel prices, due to price movements on world oil and petrol markets. The
impact of changes to indirect taxes was also greater. Regulated prices, food prices and prices
within adjusted inflation excluding fuels also rose slightly faster than forecasted. Adjusted
inflation excluding fuels is still low, however.
Tomáš Holub, Executive Director, Monetary and Statistics Department
The CNB comments on the May 2007 inflation figures
Inflation above CNB forecast
According to figures released today, annual inflation decreased from 2.5% in April to 2.4% in May 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 0.4% in May, due chiefly to a rise in fuel prices and the price impact of changes to indirect taxes on tobacco products in April last year and March this year. Increases in regulated rents had the same upward effect on the price level. Food prices moved in the opposite direction in May, with prices of vegetables and potatoes in particular recording declines.
Annual inflation in May 2007 was approximately 0.5 percentage point higher than the April CNB forecast. According to preliminary calculations, the most significant upward deviation from the forecast occurred for fuel prices, due to price movements on world oil and petrol markets. The impact of changes to indirect taxes was also greater. Regulated prices, food prices and prices within adjusted inflation excluding fuels also rose slightly faster than forecasted. Adjusted inflation excluding fuels is still low, however.
Tomáš Holub, Executive Director, Monetary and Statistics Department