Czech Republic: Inflation stabilizes in March
April 9, 2013
In March, consumer prices rose 0.1% over the previous month, which followed a monthly increase of the same magnitude in February. The subdued figure mainly reflected higher prices for food and non-alcoholic beverages, which were partially offset by lower prices for recreation and culture.
As a result of March increase, annual inflation remained stable at February's 1.7%, which was in line with market expectations, but came in below the Central Bank's estimate of 2.0%. In addition, the reading remains within the Central Bank's target of 2.0% with a tolerance margin of plus/minus 1.0 percentage points.
The Czech National Bank expects inflation to reach 2.3% by the end of this year before moderating to 1.8% by the end of 2014. FocusEconomics Consensus Forecast panellists share the Bank's assessment and also expect inflation to reach 2.3% by the end of this year, which is down 0.1 percentage points from last month's Consensus. For 2014, panellists expect inflation to fall to 1.8%.