Czech Republic: Inflation stable in October
November 9, 2012
In October, consumer prices rose 0.2% over the previous month, which contrasted the 0.1% drop recorded in September. According to the statistical institute, the monthly increase was the result of higher prices for food and non-alcoholic beverages, tobacco and alcoholic beverages as well as for clothing and footwear. Despite the monthly rise, annual headline inflation remained unchanged at September's 3.4%, which was in line with market expectations but slightly exceeded the Central Bank's estimate of 3.3%. At the current level, inflation remains above the Central Bank's target of 2.0% (with a tolerance margin of plus/minus 1.0 percentage points).
Author: Ricardo Aceves, Senior Economist