Czech Republic: Inflation edges down in July
August 9, 2018
Consumer prices increased 0.2% in July from the previous month, moderating from June’s 0.4% rise. Data released by the Czech Statistical Office (CSO) revealed that July’s climb was mainly driven by higher prices for recreation and culture, which in large part reflected higher seasonal prices for package holidays.
Inflation edged down to 2.3% in July from 2.6% in June. As a result, inflation moved closer to the midpoint of the Central Bank’s 1.0%–3.0% tolerance band. Annual average inflation, meanwhile, held steady at 2.3% for the fifth consecutive month.
Czech Republic Inflation Forecast
The Central Bank expects inflation of 2.3% for both 2018 and 2019. FocusEconomics Consensus Forecast panelists project that inflation will average 2.1% in 2018, unchanged from last month’s forecast. For 2019, panelists expect inflation of 2.2%.
Author: Javier Colato, Economist