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Czech Republic inflation comes in at multi-year high

Staff Writer | October 11, 2017
Consumer prices dropped 0.1% in Czech Republic in September over the previous month, matching August’s month-on-month result.
Czech Republic inflation
Europe   FocusEconomics
According to the Statistical Institute, the drop was mainly driven by lower prices for recreation and culture.

Cheaper package holidays, due to the end of the summer season, offset higher prices for clothing and footwear. Moreover, the price of services recorded a noticeable decrease, while goods recorded a small increase in prices.

Inflation, however, increased from 2.5% in August to 2.7% in September, the highest level since November 2012.

As a result, inflation is nearing the upper limit of the Central Bank’s 1.0%–3.0% target range.

Annual average inflation, meanwhile, increased from 2.0% in August to 2.2% in September, matching a figure last seen in July 2013.

The Central Bank expects average inflation of 2.4% for 2017 and 2.0% for 2018.

FocusEconomics Consensus Forecast panelists project that inflation will average 2.3% in 2017, which is unchanged from last month’s forecast.

For 2018, panelists expect inflation of 2.1%, unchanged from last month’s projection.