Czech Republic: Inflation climbs in January
February 13, 2019
Consumer prices rose 1.0% from the previous month in January, accelerating notably from December’s 0.1% increase. Data released by the Czech Statistical Office (CSO) revealed that January’s climb was largely due to higher prices for food and non-alcoholic beverages, and for housing and utilities.
Meanwhile, inflation increased from 2.0% in December to 2.5% in January. As a result, it moved above the Central Bank’s target of 2.0% but remained well within its 1.0%–3.0% tolerance band. Annual average inflation remained stable at 2.2% for the fourth consecutive month in January.
Czech Republic Inflation Forecast
The Central Bank expects average inflation of 2.2% for 2019 and 2.0% for 2020. FocusEconomics Consensus Forecast panelists project that inflation will average 2.2% in 2019, down 0.1 percentage points from last month’s forecast, and 2.0% in 2020.
Author: Javier Colato, Economist