Czech Republic: Inflation stabilizes in February
March 10, 2014
Consumer prices rose 0.2% over the previous month in February, which was slightly higher than the 0.1% increase observed in January. According to the statistical office, the monthly increase reflected higher prices for recreation and culture as well as for household equipment and household maintenance. Annual inflation was stable at January's 0.2% in February, which matched market expectations. Inflation is resting at the lowest level in over four years and is below the Czech National Bank's (CNB) target range of 1.0% to 3.0%. The CNB expects inflation to end 2014 at 2.1%. For 2015, the Bank expects inflation to rise to 2.2%. FocusEconomics Consensus Forecast panelists expect inflation to reach 1.7% by the end of 2014, which is down 0.1 percentage points from last month's Consensus. For 2015, panelists expect inflation to rise to 2.1%.
Author: Ricardo Aceves, Senior Economist