Prices of industrial producers fell 0.5% in April, respectively by 0.1% on year-on-ear basis, primarily due to the administrative changes consisting of summer energy prices for businesses. Prices of agricultural producers fell 0.7% in April, yearly change dropped to 2.7% from 4.2% in March. Particularly prices of animal products have been falling for 9 months and helping to press the Czech inflation down.
According to the Governor of CNB Zdenek Tuma, a gap between inflation and interest rates in the Czech republic and the EU narrows in a favorable way, thus the entry of the CR into the EU should not have any dramatic impact on exchange rate and interest rates. “Next 12 months will tell us a lot about the CR’s attitude towards the euro currency adoption”. Tuma also said that we would have to express our opinion soon on the entry into the ERM II together with the EU accession and that all would predetermine further steps of the central bank.
April consumer prices rose 0.5% m/m in Poland following an increase by 0.2% in March. Prices of fuelling rose 3.1%. Rate of yearly inflation dropped to 3.0% - a new post-communist era minimum from 3.3% in March and 6.6% in April 2001.
United States inflation rose again in April due to a sharp rise of oil and gasoline. In comparison with previous month, the prices were in April 0.5% up following a rise by 0.3% m/m in March. Yearly inflation jumped to 1.6% from 1.5% in March and 1.1% in February.
U.S. April industrial output rose for a fourth straight month, led by a surge in carmaking. The 0.4% percent increase in production at factories, mines and utilities followed a 0.4% rise in March. However, the production was down 2% from April a year ago.
Also in France the production goes better. March output was higher than previous month for the third time in a row. The output rose 0.5%, at the same pace as in February. Year-on-year decrease diminished from –1.2% to –0.9% in April.
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Radim Krejčí