Czech Republic: Inflation rises in May
June 9, 2014
In May, consumer prices rose 0.1% over the previous month, which was up from the flat reading registered in April. According to the Czech Statistical Office, higher prices for alcoholic beverages and tobacco were the main drivers behind the monthly rise.
Annual headline inflation rose from 0.1% in April—the lowest level in four-and-a-half years—to 0.4% in May and thus reached the level last seen in December 2013. The reading was in line with market expectations. Nonetheless, inflation is still well below the Czech National Bank’s (CNB) target range of 1.0% to 3.0%.
Author: Ricardo Aceves, Senior Economist