Inflation up again in September

Inflation increased by 0.9% in September, reaching 6.6% for the first nine months of the year. If the target for the year of 9% is to be achieved, price increases over the next three months cannot exceed 2.2%, or monthly increases of 0.7%-0.8%. Due to a level of depreciation against the euro/dollar currency basket of only 1.3% for the first nine months of the year, the ROL witnessed its highest level of growth in real terms against foreign currencies since 1990, at a rate of 5.3%. To validate National Bank forecasts of 2-4% growth in real terms against the euro/dollar basket, the euro would need to experience relatively fast growth in the remaining months of the year, a normal event every autumn. Growth against the euro has been even higher at 6.5%, given that the euro ended the first nine months of the year at almost the same level as at end 2003. ZF