Czech Republic: Inflation stabilizes in March at lowest level in over four years
April 9, 2014
In March, consumer prices remained unchanged over the previous month, which was below the 0.2% increase observed in February. According to the Czech Statistical Office, the monthly reading reflected that higher prices for food and non-alcoholic beverages as well as for clothing and footwear offset lower prices for recreational and cultural activities as well as for transport. Annual inflation stabilized at February's 0.2% in March, staying at the lowest level registered since October 2009. The reading was on par with market expectations. Inflation is still well 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 1.6% 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 2.0%.
Author: Ricardo Aceves, Senior Economist