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.
(David Marek)