Czech Republic: Inflation eases from over six-year high in April

Consumer prices rose 0.1% from the previous month in April, following March’s 0.2% month-on-month increase. Data released by the Czech Statistical Office (CSO) revealed that April’s uptick was largely due to higher prices for clothing and footwear, and fuels.

Meanwhile, inflation edged down to 2.8% in April from 3.0% in March, which had marked the highest reading in over six years. As a result, it now stands within the Central Bank’s 1.0%–3.0% tolerance range. Annual average inflation ticked up to 2.4% from 2.3% in the previous month.

Czech Republic Inflation Forecast

The Central Bank expects average inflation of 2.7% for 2019 and 2.1% for 2020. FocusEconomics Consensus Forecast panelists project that inflation will average 2.4% in 2019, which is up 0.1 percentage points from last month’s forecast, and 2.0% in 2020.