The Czech National Bank's inflation report for Q2 2000

The moderate increase in inflation during Q2 2000 resulted from both an inc rease in net inflation and a hike in several regulated prices. Rising energ y and raw material prices influenced the development of industrial PPI but their impact on CPI (except for fuel prices) continued to be limited, as di d the impact of rising agricultural PPI. GDP growth in Q1 2000 was due primarily to net export growth. For the first time in eleven quarters the growth of investment demand was positive. In April, the CNB set the inflation target for net inflation for the year-e nd 2001 at 2-4%. Importantly enough, the target was set in cooperation with the government.