Czech Republic: Inflation comes in at multi-year high
October 9, 2017
Consumer prices dropped 0.1% in September over the previous month, matching August’s month-on-month result. 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.
Author: Jan Lammersen, Economist