Czech Republic: Inflation edges down in September

Consumer prices fell 0.3% in September from the previous month, contrasting August’s mild 0.1% rise. Data released by the Czech Statistical Office (CSO) revealed that September’s dip was largely due to lower prices for package holidays as the summer season came to an end.

Inflation edged down from 2.5% in August to 2.3% in September. 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 seventh consecutive month in September.

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 2.2% in 2018, unchanged from last month’s forecast. For 2019, panelists also expect inflation of 2.2%, also unchanged from last month’s estimate.