Czech Republic: Inflation moderates in April, falls to lowest level in over four years
May 12, 2014
In April, consumer prices were unchanged over the previous month, which followed the flat reading registered in March. According to the Czech Statistical Office, the subdued reading reflected that higher prices for clothing and footwear offset lower prices for food and non-alcoholic beverages as well as for alcoholic beverages.
Annual headline inflation inched down from 0.2% in March to 0.1% in April and thus fell to the lowest level since October 2009. The reading contrasted the 0.3% increase that markets had expected. Inflation is still well below the Czech National Bank's (CNB) target range of 1.0% to 3.0%.
The CNB revised down its inflation projection and now sees inflation ending 2014 at 1.6% (previous estimate: 2.1%). For 2015, the Bank expects inflation to rise to 1.9% (previous estimate: 2.2%). FocusEconomics Consensus Forecast panelists forecast that inflation will reach 1.6% by the end of 2014, which is down 0.1 percentage points from last month's Consensus. For 2015, panelists expect inflation to rise to 2.0%.
Author: Ricardo Aceves, Senior Economist