The CNB comments on the July 2016 inflation figures
Inflation in line with the CNB’s forecast in July
According to figures released today, the price level increased by 0.5% year on year in July 2016. Consumer prices adjusted for the first-round effects of changes to indirect taxes rose by 0.3% year on year in July. Inflation is thus still well below the CNB’s target.
Annual headline inflation increased in line with the CNB’s expectations in July. The actual price movements in the individual consumer basket items also largely corresponded to the forecast.
The published figures thus bear out the message of the CNB’s current forecast. According to the forecast, inflation will start to rise in the near future and slightly exceed the 2% target at the monetary policy horizon, i.e. 12–18 months ahead. During 2018, inflation will return to the target from above. Domestic costs will continue to rise apace over the entire forecast horizon due to rising wages and price of capital amid continued growth of the Czech economy. The already fading anti-inflationary effect of import prices will gradually disappear.
Petr Král, Deputy Executive Director, Monetary Department
The CNB comments on the July 2016 inflation figures
Inflation in line with the CNB’s forecast in July
According to figures released today, the price level increased by 0.5% year on year in July 2016. Consumer prices adjusted for the first-round effects of changes to indirect taxes rose by 0.3% year on year in July. Inflation is thus still well below the CNB’s target.
Annual headline inflation increased in line with the CNB’s expectations in July. The actual price movements in the individual consumer basket items also largely corresponded to the forecast.
The published figures thus bear out the message of the CNB’s current forecast. According to the forecast, inflation will start to rise in the near future and slightly exceed the 2% target at the monetary policy horizon, i.e. 12–18 months ahead. During 2018, inflation will return to the target from above. Domestic costs will continue to rise apace over the entire forecast horizon due to rising wages and price of capital amid continued growth of the Czech economy. The already fading anti-inflationary effect of import prices will gradually disappear.
Petr Král, Deputy Executive Director, Monetary Department