In January, consumer prices rose 0.69% over the previous month, which was a notch above the 0.52% increase observed in December. The monthly rise reflected higher prices for electricity as well as for transport. Despite the price increase, annual headline inflation fell from 2.3% in December to 1.7% in January. The lower reading surprised private sector analysts, who saw inflation unchanged at 2.3%, and fell short of the Central Bank's forecast that inflation would fall to 2.0%. Meanwhile, at its latest monetary policy meeting, held on 3 February, the Central Bank left the two-week repo interest rate unchanged at a record low of 0.75% for the sixth consecutive month. The Central Bank has not altered its dovish tone since 6 May 2010, when the Bank last cut the two-week repo interest rate by 25 basis points. Monetary authorities kept the key monetary policy interest rate below the European Central Bank's main rate of 1.00%, arguing that headline inflation remained in line with the inflation target (2.0% 1.0%) and that inflationary risks are balanced. However, in contrast with previous meetings, the Central Bank stated that it was only one vote short of lifting the two-week repo rate, with three out the seven members of the board voting for an increase in rates by 25 basis points. The narrow decision suggests that the Bank may soon begin monetary tightening. The Central Bank expects inflation to rise to 2.3% in the final quarter this year before falling to 2.0% in the first quarter of 2012.
Czech Republic Inflation
Inflation moderates in January
February 9, 2011
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Czech Republic Economic News
October 24, 2016
The economic sentiment indicator published by the Czech Statistics Office (CSO) rose from September’s 97.1 points to 97.5 points in October, marking a nine-month high.
October 10, 2016
In September, consumer prices fell 0.2% from the previous month, matching August’s reading.
October 7, 2016
Industrial production grew 13.1% year-on-year in August, which sharply contrasted the 14.1% fall registered in July and was the best result since May 2011.
October 3, 2016
The manufacturing Purchasing Managers’ Index (PMI) produced by IHS Markit rose from August’s 50.1 to a four-month high of 52.0 in September.
September 29, 2016
At its meeting on 29 September, the Czech National Bank (CNB) decided to leave the two-week repo rate unchanged at its so-called “technical zero” of 0.05%.