Czech Republic Inflation May 2021

Czech Republic

Czech Republic: Inflation ticks down in May

June 10, 2021

Consumer prices rose 0.17% from the previous month in May, following April’s 0.53% jump. Looking at the details of the release, May’s result mainly reflected higher prices for automotive fuels and lubricants and motor cars.

Meanwhile, inflation declined to 2.9% in May from April’s 3.1%, which had marked the highest reading since September 2020, and moving marginally below the higher bound of the Central Bank’s 1.0%–3.0% tolerance range. Lastly, annual average inflation was stable at April’s 2.8% in May.

Commenting on the release, Jakub Seidler, Czech Republic chief economist at ING, stated:

“While the CPI was driven higher by technical and supply factors, it is still above the central bank's tolerance band and likely increases the chances for an end-of-June hike, in our view. It is clear now that the CNB meeting in June or August will deliver the first CNB tightening.”

FocusEconomics Consensus Forecast panelists forecast that inflation will average 2.7% in 2021, which is unchanged from last month’s Consensus, and 2.4% in 2022.

Author: Massimo Bassetti, Senior Economist

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Czech Republic Inflation Chart

Czech Republic Inflation May 2021

Note: Month-on-month changes and annual variation of consumer price index (CPI) in %.
Source: Czech Statistical Office (CSO) and FocusEconomics calculations.

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