Czech Republic: Inflation edges down in December
January 14, 2012
In December, consumer prices rose 0.42% over the previous month, which followed an increase of virtually the same magnitude in November, but was below the 0.52% increase registered in December 2010. The monthly increase reflected higher prices for food and non-alcoholic beverages, as well as for housing, water, electricity and gas. Annual headline inflation inched down to 2.4% in December from 2.5% in November, which slightly undershot market expectations that had inflation remaining at 2.5%, but came in well above the Central Bank's estimate, which had inflation falling to 1.7%. Inflation closed the year above the Central Bank's target of 2.0% (with a tolerance margin of 1.0 percentage points). The Central Bank expects inflation to rise to 2.8% by the end of this year. For 2013, monetary officials estimate inflation to fall to 1.6%.
Author: Ricardo Aceves, Senior Economist