CRO NATIONAL BANK IS MONITORING INFLATION MOVEMENT - DEPUTY GOVERNOR

ZAGREB, Sept 15 (Hina) - The Croatian National Bank (HNB) has estimated that there is no need to tighten the monetary policy, HNB Deputy Governor Boris Vujcic told reporters in Zagreb on Friday. The HNB is carefully monitoring the movement of inflation, whose increase this year was mostly caused by increases in the prices of oil products and excise taxes, which practically almost completely explains the increase of retail prices. This increase in prices was not generated by an increased demand, Vujcic said, adding using the measures of monetary policy would not have any effect in this situation. However, if this increase in prices spreads to other prices, this would be a signal that the monetary policy should be tightened, Vujcic added. Data on the movement of prices for August show that this is not the case and the central bank is now waiting for September data, Vujcic said, adding he had participated in a round table, entitled "Transparency and Business in Croatia", at the Zagreb Fair. Over the past months, the inflation rate has reached the highest level since the introduction of a stabilisation programme several years ago. According to the State Institute for Statistics, the increase of retail prices was highest in June this year, when retail prices rose by 1.9 percent in relation to May and by seven percent in relation to June last year. In comparison to June, retail prices in July increased by 0.5 percent and in August they were on the same level as July prices. In relation to August last year, retail prices in August this year were 6.5 percent higher. (hina) jn rml