Czech Republic: Inflation inches down in October

Consumer prices rose 0.4% in October from the previous month, contrasting September’s 0.3% drop. Data released by the Czech Statistical Office (CSO) revealed that October’s climb was largely due to higher prices for food and non-alcoholic beverages as well as clothing and footwear.

Meanwhile, inflation ticked down from 2.3% in September to 2.2% in October. As a result, inflation moved closer to the midpoint of the Central Bank’s 1.0%–3.0% tolerance band. Similarly, annual average inflation inched down from 2.3% in September to 2.2% in October.

Czech Republic Inflation Forecast

The Central Bank expects average inflation of 2.6% for 2019 and 2.0% for 2020. FocusEconomics Consensus Forecast panelists project that inflation will average 2.2% in 2019, unchanged from last month’s forecast, and 2.2% in 2020.