Czech Republic: Inflation rises in September
October 10, 2011
In September, consumer prices dropped 0.17% over the previous month, following the 0.26% decrease observed in August. The monthly drop primarily reflected declining prices for package holidays due to the end of summer season. Despite the monthly drop, annual headline inflation inched up from 1.7% in August to 1.8% in September, slightly overshooting market expectations, which had inflation remaining at 1.7%, but well below the Central Bank's estimate that had inflation rising to 2.2%. As a result, inflation remained below the Central Bank's target of 2.0% ( 1.0 percentage points) for the fourth consecutive month. The Central Bank expects inflation to close at 2.3% by the end of this year, before rising to 3.2% at the end of 2012.
Author: Ricardo Aceves, Senior Economist