Prague

Czech November inflation was 1.1 percentage point higher than the Czech National Bank had forecast, CNB section head Tomas Holub told CTK.

Like in October, the reason were faster-than-expected food prices.

In October, inflation was 0.2 percentage points above the CNB target, and in the preceding months lower than the target.

Motor fuel prices were also higher in November than the CNB predicted in October.

Inflation adjusted for fuel and regulated prices, and the impact of indirect taxes was in line with the CNB’s latest forecast.

The Czech Statistical Office said today inflation accelerated to 5 percent in November from October’s 4 percent, and was above the limit set by the CNB.

The primary impact of changes in indirect taxes is estimated at slightly over 1 percentage point. Adjusted for this factor, inflation was about 4 percent, or at the edge of the CNB tolerance band around its 3-percent inflation target.

Month-on-month, consumer pries grew by 0.9 percent.

“This was above all due to a fast increase in food prices which caused the biggest month-on-month consumer price growth since January 1993. Prices of bread and cereals, eggs, milk, butter and cheeses, oil and fats, vegetables, and sweets, increased the most markedly,” said the CNB. Prices of motor fuels also grew.

A fall in the prices of recreation and culture had the opposite effect on inflation, the CNB noted.

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