CNB Expects Inflation To Approach Its +2% Y/Y Target In Early 2024

The CNB released its comments on the August CPI outturn, noting that inflation eased in line with its forecast, even as it remained "well above the upper boundary of the tolerance band around the CNB’s target".

• "Individual components of inflation recorded slight deviations from the forecast. Food prices saw a lower year-on-year increase than predicted in the forecast. Core inflation was also below the forecast. By contrast, the year-on-year decline in fuel prices was less pronounced than expected. Administered prices rose somewhat faster. The effects of changes to indirect taxes were in line with the forecast."
• "The observed price developments bear out the expectations of the summer forecast that inflation would continue to fall during summer. Annual inflation will slow until September. The downward trend in annual inflation will temporarily halt in October, but only as a result of the statistical effect of the energy savings tariff introduced at the end of last year. After its fade-out, inflation will fall sharply to close to the CNB’s 2% target early next year."
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