Czech Republic: Inflation declines to lowest level since December 2021 in September
Inflation came in at 6.9% in September, down from August’s 8.5%. September’s reading represented the lowest inflation rate since December 2021. The reading was largely driven by a softer increase in prices for housing and utilities. In addition, price pressures for food and non-alcoholic beverages eased. Moreover, prices for recreation and culture grew at a more subdued pace.
Accordingly, the trend pointed down, with annual average inflation coming in at 12.7% in September (August: 13.6%).
Lastly, consumer prices dropped 0.74% from the previous month in September, contrasting the 0.20% rise logged in August. September’s result marked the weakest reading since October 2022.
Commenting on the release, Frantisek Taborsky, economist at ING, stated: “Inflation fell faster than expected in September, but base effects mean that inflation could rise again throughout the rest of the year. However, headline and core inflation are below the central bank’s forecast and we think this opens the door to a rate cut in November.”