Inflation in Czech Republic
Czech Republic - Inflation (end of period)
Inflation reaches new all-time high in July
Consumer prices rose 1.33% from the previous month in July, decelerating slightly from June's 1.58% increase. The softer print was due to milder increases in prices for utilities and transport as well to a drop in food prices.
Inflation rose to 17.5% in July, above June’s 17.2%. July's result was the highest inflation rate on record. Meanwhile, the trend pointed up, with annual average inflation coming in at 10.6% in July (June: 9.4%).
Commenting on the short-term outlook, Jiri Polansky, analyst at Erste Group, stated:
“Against previous estimates, we are moving the peak of inflation upwards to 19%, and also prolong the length of the period during which inflation will be high. In the previous forecast, we perceived such a development as one of the main risks, and current data show it will probably come true. The main reason will be further adjustments to the electricity and gas price lists, which will take place in the second half of this year (mainly in Q3 22). The base effect will act in the opposite direction, which will be the main factor behind the gradual (approximately 1.5-2 years) return of inflation towards the target. The anti-inflationary development of domestic demand will act in the same direction, as we expect a shallow recession of the Czech economy during the second half of this year. And last but not least, we also expect a correction of some prices.”
Meanwhile, Frantisek Taborsky, analyst at ING, commented on the likely repercussions on the monetary policy stance:
“Inflation in July showed a further slowdown in the month-on-month rate, despite the announced record hike in household energy prices. We believe inflation will continue to rise, but the pace may be more gradual and peak later, making things easier for the dovish Czech National Bank. We see less risk of an additional rate hike after today's number.”
FocusEconomics Consensus Forecast panelists forecast that inflation will average 14.7% in 2022, which is from last month’s Consensus, and 6.6% in 2023.
Czech Republic - Inflation (eop) Data
|Inflation Rate (CPI, annual variation in %, eop)||0.0||2.0||2.4||2.0||3.2|
5 years of economic forecasts for more than 30 economic indicators.
Czech Republic Inflation (eop) Chart
Source: Czech Statistical Office and FocusEconomics calculations.
Czech Republic Facts
|Bond Yield||1.64||-1.85 %||Dec 31|
|Exchange Rate||22.76||-0.66 %||Dec 30|
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August 12, 2022
Consumer prices rose 1.33% from the previous month in July, decelerating slightly from June's 1.58% increase.
August 9, 2022
Industrial production expanded 1.7% year on year in working-day adjusted terms in June (May: +3.3% yoy).
August 3, 2022
The S&P Global Manufacturing Purchasing Managers' Index (PMI) dropped from June's 49.0 to 46.8 in July, the lowest value in 26 months.
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July 26, 2022
The economic sentiment indicator, published by the Czech Statistical Office (CSO), fell to 95.7 in July from 98.3 in June. The business confidence index decreased to 100.2 from June’s 103.1.