In December, consumer prices jumped 0.52% over the previous month, which was well above the 0.17% increase observed in November. The monthly rise reflected higher prices for fuels, food and non-alcoholic beverages. As a result of the monthly jump, annual headline inflation climbed from 2.0% in November to 2.3% in December, which represented the highest level registered since March 2009. The higher reading exceeded both private analysts', and the Central Bank's expectations of a 2.2% rise. Meanwhile, at its latest monetary policy meeting, held on 22 December, the Central Bank left the two-week repo interest rate unchanged at a record low of 0.75% for the fifth consecutive month. The Central Bank has not altered its monetary policy since 6 May, when the Bank last cut the two-week repo interest rate by 25 basis points. Officials kept the key monetary policy interest rate below the European Central Bank's main rate of 1.00%, claiming that headline inflation remained in line with the inflation target (2.0% 1.0%), and inflationary risks are balanced. Moreover, the majority of board members agreed that a further rate hike could be postponed until near the end of this year. The announcement represents a policy shift from previous intentions to begin monetary tightening during the second quarter this year. The Central Bank expects inflation to remain below its target rate in the final quarter this year (Q4: 2.0%) and to inch down to 1.9% in the first quarter of 2012. Monetary authorities have set the inflation target at 2.0% ( 1.0 percentage points) until the Czech Republic's entry to the euro area.
Czech Republic Inflation
Inflation rises to 21-month high
January 10, 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%.