Czech Republic: Inflation remains at Central Bank's target in December

Consumer prices rose 0.1% from the previous month in December, rebounding from November’s 0.1% dip. Data released by the Czech Statistical Office (CSO) revealed that December’s uptick was largely due to higher prices for food and non-alcoholic beverages.

Meanwhile, inflation was unchanged at November’s 2.0% in December. As a result, it remained at the midpoint of the Central Bank’s 1.0%–3.0% tolerance band. Similarly, annual average inflation remained stable at 2.2% for the third consecutive month in December.

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 2.3% in 2019, unchanged from last month’s forecast, and 2.0% in 2020.