Czech Republic: Inflation rises in December, rests within Central Bank's target range
January 9, 2014
Consumer prices rose 0.4% in December over the previous month, which contrasted the 0.1% fall observed in November. According to the statistical office, the monthly increase reflects higher prices for food and non-alcoholic beverages as well as for transport.
Annual headline inflation, which rose from 1.1% in November to 1.4% in December, still rests within the Czech National Bank's (CNB) target range of 1.0% to 3.0%. In addition, the reading exceeded the 1.3% the market had expected.
According to its November Inflation Report, the CNB expects inflation to end 2014 at 1.2%. For 2015, the Bank expects inflation to rise to 1.9%. FocusEconomics Consensus Forecast panelists expect inflation to reach 1.6% by the end of 2014, which is unchanged from last month's Consensus. For 2015, panelists expect inflation to rise to 2.0%.
Author: Ricardo Aceves, Senior Economist