Czech Republic: Inflation rises to 16-month high in February
March 11, 2019
Consumer prices rose 0.2% from the previous month in February, following January’s 1.0% month-on-month increase. Data released by the Czech Statistical Office (CSO) revealed that February’s uptick was largely due to higher prices for food and non-alcoholic beverages, and for housing and utilities.
Meanwhile, inflation edged up from 2.5% in January to 2.7% in February, a 16-month high. As a result, it moved further above the Central Bank’s target of 2.0% but remained within its 1.0%–3.0% tolerance band. Annual average inflation ticked up to 2.3% from 2.2% in the previous month.
Czech Republic Inflation Forecast
The Central Bank expects average inflation of 2.2% for 2019 and 2.0% for 2020. FocusEconomics Consensus Forecast panelists project that inflation will average 2.2% in 2019, which is unchanged from last month’s forecast, and 2.0% in 2020.
Author: Javier Colato, Economist