The CNB comments on the August 2007 inflation figures
Inflation comes in below the CNB forecast
According to figures released today, annual inflation rose to 2.4% in August 2007, from 2.3% in
July. This means that it was 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 changes to indirect taxes to annual
inflation was about 1.1 percentage point. Inflation adjusted for these effects - 'monetary
policy-relevant inflation" - thus fell to roughly 1.3% in August.
In month-on-month terms, the price level rose by 0.3%. Price increases were recorded for tobacco
products (due to previous changes to excise duties), regulated rents and foreign package holidays
(owing to the continuing summer season). By contrast, prices of some foods and prices of clothing
and footwear decreased, again mostly as a result of the usual seasonal movements.
Annual inflation in August 2007 was about 0.2 percentage point lower than the CNB's July
forecast. This deviation is due to adjusted inflation excluding fuels. By contrast, the effect of
changes to indirect taxes was higher than forecasted. Food and fuel prices also rose somewhat
faster than expected by the CNB.
Petr Vojtíšek, Deputy Executive Director, Monetary and Statistics Department
The CNB comments on the August 2007 inflation figures
Inflation comes in below the CNB forecast
According to figures released today, annual inflation rose to 2.4% in August 2007, from 2.3% in July. This means that it was 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 changes to indirect taxes to annual inflation was about 1.1 percentage point. Inflation adjusted for these effects - 'monetary policy-relevant inflation" - thus fell to roughly 1.3% in August.
In month-on-month terms, the price level rose by 0.3%. Price increases were recorded for tobacco products (due to previous changes to excise duties), regulated rents and foreign package holidays (owing to the continuing summer season). By contrast, prices of some foods and prices of clothing and footwear decreased, again mostly as a result of the usual seasonal movements.
Annual inflation in August 2007 was about 0.2 percentage point lower than the CNB's July forecast. This deviation is due to adjusted inflation excluding fuels. By contrast, the effect of changes to indirect taxes was higher than forecasted. Food and fuel prices also rose somewhat faster than expected by the CNB.
Petr Vojtíšek, Deputy Executive Director, Monetary and Statistics Department