Czech Republic: Inflation rises in June
Latest reading: Inflation rose to 2.9% in June from May’s 2.4%, marking the highest inflation rate since December 2024. Looking at the details of the release, prices for food plus housing and utilities, grew at a quicker pace. Moreover, transportation costs fell at a softer rate.
Annual average inflation edged up to 2.6% in June (May: 2.5%).
Lastly, consumer prices increased 0.26% in June over the previous month, coming in below May’s 0.52% increase.
Panelist insight: Commenting on the outlook, ING’s David Havrlant stated:
“We currently see a stable base rate at 3.5% as the base case scenario, with average annual inflation expected to reach 2.6% this year. However, given the continued economic rebound within a tight labour market, the overall risks are asymmetrically tilted toward higher inflation ahead, which might potentially require somewhat tighter monetary policy conditions to hold inflation in check.”