After the rather big increase in the total consumer price level in January, the CPI stagnated in February. February inflation rate expressed in terms of CPI increment reached 4.0% year-on-year. As we expected, the most important for the February’s CPI figure was a drop of food prices caused by the significant decrease of meat prices and raw vegetable prices. Another factor behind the zero inflation was a decline of fuel prices by 2.2% that eliminated an effect of a jump in rail transport prices by 6.5%. In February, we could see seasonal effects typically influencing leisure prices (+0.7%) and clothing prices. Although the inflation figures are very good, we do not expect further rate cut by CNB at its next meeting at the end of March.
By February 28, 2001, the unemployment rate under registration was 9.0%. By February 28, 2001, job centres registered altogether 466 120 job seekers. That is by 7,957 less than by the end of January 2001. Compared with the same period of the preceding year, the number of job seekers decreased by 39,991.
The Czech koruna gained ground on Thursday as investors continued to take profits after the koruna bounced off a support level earlier in the week. The currency gave little reaction to better-than-expected February inflation data, showing prices remained flat from the previous month. Late on Thursday the koruna was trading near the day's high of 34.65/68 to the euro from late Wednesday's 34.78/81 and the morning's 34.75/79. Koruna/dollar rose to 37.25/27 from the morning's 37.33/38
The longest state 6.95/16 rose 35 basis points from late Wednesdsay to 106.75/05, yielding 6.24/21 percent. The state 6.75/05 up 30 points to 104.30/60, yielding 5.50/42 percent.
(David Marek)