Czech Republic: Inflation rises to seven-month high in July
August 11, 2014
In July, consumer prices rose 0.2% over the previous month, which was up from the flat reading registered in June. According to the Czech Statistical Office, higher prices for recreation and culture as well as for housing, water, electricity, gas and other fuels were the main drivers behind the monthly increase.
As a result of the monthly increase, annual headline inflation rose from zero in June to 0.5% in July, which marked the highest inflation rate since December 2013. The reading overshot the 0.3% increase the market had expected. Inflation, nonetheless, is well below the Czech National Bank’s (CNB) target range of 1.0% to 3.0%.
Author: Ricardo Aceves, Senior Economist