Czech Republic: Inflation eases further in December

Consumer prices inched up 0.1% in December from the previous month, matching market expectations. Data from the Statistical Institute showed that the rise was mainly driven by higher prices for food and non-alcoholic beverages.

Inflation moderated from 2.6% in November to 2.4% in December. Subsequently, inflation moved closer to the mid-point of the Central Bank’s 1.0%–3.0% target range. Annual average inflation, meanwhile, inched up from 2.4% in November to 2.5% in December.

Czech Republic Inflation Forecast

The Central Bank expects average inflation of 2.5% for 2018 and 1.9% for 2019. FocusEconomics Consensus Forecast panelists project that inflation will average 2.3% in 2018, which is up 0.1 percentage points from last month’s forecast. For 2019, panelists expect inflation of 2.0%.