Czech Republic: Inflation falls in May
May 10, 2016
In May, consumer prices fell 0.2% over the previous month, which contrasted April’s 0.6% rise. According to the Czech Statistical Office, the print mainly reflected a drop in prices for housing, water, electricity, gas and other fuels, alcoholic beverages and tobacco, and food and non-alcoholic beverages.
Inflation decreased from 0.6% in April to 0.1% in May. The result marked the lowest reading in four months and undershot market expectations of a 0.4% reading. As a result of the decrease, inflation is even further below the lower bound of the Czech National Bank’s (CNB) target range of 1.0% to 3.0%.
Author: Robert Hill, Economist