Czech Republic: Inflation rises in September as expected
October 9, 2012
In September, consumer prices dropped 0.1% over the previous month, which mirrored declines of the same magnitude in August and July. According to the statistical institute, the monthly decline was the result of lower prices for recreation and culture, which was enough to offset higher prices for transport as well as for clothing and footwear. Despite the monthly drop, annual headline inflation inched up from 3.3% in August to 3.4% in September, which was in line with market expectations, but fell short of the Central Bank's estimate that had inflation rising to 3.5%. At the current level, inflation remains above the Central Bank's target of 2.0% (with a tolerance margin of plus/minus 1.0 percentage points).
Author: Ricardo Aceves, Senior Economist