Czech Republic: Inflation inches down, rests below Central Bank's target range
November 11, 2013
Consumer prices rose 0.2% in October over the previous month, which contrasted the 0.4% fall observed in September. According to the statistical office, the monthly increase reflects higher prices for alcoholic beverages and tobacco as well as for clothing and footwear.
Annual headline inflation inched down from 1.0% in September to 0.9% in October, falling below the Czech National Bank's (CNB) target range of 1.0% to 3.0% for the first time since March 2010. In addition, the reading contrasted market expectations that inflation would remain stable at 1.0%.
According to its November Inflation Report, the CNB expects inflation to end both this year and next at 1.2%. The forecast was revised down from 1.6% for 2013 and 1.8% for 2014. FocusEconomics Consensus Forecast panelists expect inflation to reach 1.5% by the end of this year, which is down 0.1 percentage points from last month's Consensus. For 2014, panelists expect inflation to remain broadly stable at 1.6%, which is also down 0.1 percentage points from last month's forecast.
Author: Ricardo Aceves, Senior Economist