According to our estimate, demand and labour market conditions still do not trigger any major inflationary pressures in the domestic market. This is at the same time the key reason why we tightened monetary conditions in the past period more moderately than other inflation-targeting countries in the region.
Chart 5 CPI movements in selected CESEE countries (y-o-y rates, in %)  19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0  Romania  Hungary  16.7  Czech Republic  15.0  17.5  Poland  Serbia 15.6  14.7 13.7  12.8  10.4  9.3 7.5  7 8 9 101112 1 2 3 4 5 6 7 7 8 9 101112 1 2 3 4 5 6 7 7 8 9 101112 1 2 3 4 5 6 7 7 8 9 101112 1 2 3 4 5 6 7 7 8 9 101112 1 2 3 4 5 6 7 2022 2022 2022 2022 2022  Headline inflation  Core inflation  Inflation target  Tolerance band  Source: central banks.