Czech Republic: Inflation edges up in August

Consumer prices increased a soft 0.1% in August from the previous month, moderating slightly from July’s 0.2% rise. Data released by the Czech Statistical Office (CSO) revealed that August’s uptick was largely due to higher prices for electricity and housing rents.

Inflation edged up from 2.3% in July to 2.5% in August. As a result, inflation moved further away from the midpoint of the Central Bank’s 1.0%–3.0% tolerance band. Annual average inflation, meanwhile, held steady at 2.3% for the sixth 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 2.2% in 2018, up 0.1 percentage points from last month’s forecast. For 2019, panelists also expect inflation of 2.2%.