The CNB comments on the June 2007 inflation figures
Inflation above CNB forecast
According to figures released today, annual inflation edged up from 2.4% in May to 2.5% in June
this year. This means it was still in the lower half of the tolerance band set by the CNB around
its target of 3%. The contribution of the first-round effects of indirect tax changes to annual
inflation was around 0.5 percentage point. Inflation adjusted for these effects was thus still
around 2%.
In month-on-month terms, the price level increased by 0.3%. In addition to some usual seasonal
movements, it was affected by growth in fuel prices and a rise in tobacco product prices stemming
from previous increases in excise duty.
Annual inflation in June 2007 was around 0.5 percentage point higher than the CNB's April
forecast, i.e. the deviation recorded in the previous two months persisted. Roughly half this
deviation was due to fuel prices. Another significant factor was a faster-than-forecasted impact of
changes in indirect taxes. However, annual growth in regulated prices and food prices was also
slightly higher than forecasted. Adjusted inflation excluding fuels was broadly in line with the
forecast, rising to the 1% level for the first time in some time. However, the rise was only
gradual.
Tomáš Holub, Executive Director, Monetary and Statistics Department
The CNB comments on the June 2007 inflation figures
Inflation above CNB forecast
According to figures released today, annual inflation edged up from 2.4% in May to 2.5% in June this year. This means it was still in the lower half of the tolerance band set by the CNB around its target of 3%. The contribution of the first-round effects of indirect tax changes to annual inflation was around 0.5 percentage point. Inflation adjusted for these effects was thus still around 2%.
In month-on-month terms, the price level increased by 0.3%. In addition to some usual seasonal movements, it was affected by growth in fuel prices and a rise in tobacco product prices stemming from previous increases in excise duty.
Annual inflation in June 2007 was around 0.5 percentage point higher than the CNB's April forecast, i.e. the deviation recorded in the previous two months persisted. Roughly half this deviation was due to fuel prices. Another significant factor was a faster-than-forecasted impact of changes in indirect taxes. However, annual growth in regulated prices and food prices was also slightly higher than forecasted. Adjusted inflation excluding fuels was broadly in line with the forecast, rising to the 1% level for the first time in some time. However, the rise was only gradual.
Tomáš Holub, Executive Director, Monetary and Statistics Department