Czech Republic: Inflation edges up, returns to Central Bank's target range
December 9, 2013
Consumer prices fell 0.1% in November over the previous month, which contrasted the 0.2% rise observed in October and came in below expectations of a flat reading. According to the statistical office, the monthly fall was broad-based, although a significant drop was seen in prices for alcoholic beverages and tobacco as well as for recreation and culture.
Annual headline inflation inched up from 0.9% in October to 1.1% in November, returning to the Czech National Bank's (CNB) target range of 1.0%-3.0%. The reading was on par with market expectations.
According to its November Inflation Report, the CNB expects inflation to end both this year and next at 1.2%. The forecast was revised down from 1.6% for 2013 and from 1.8% for 2014. FocusEconomics Consensus Forecast panelists expect inflation to reach 1.5% by the end of this year, which is down 0.1 percentage points from last month's Consensus. For 2014, panelists expect inflation to remain broadly stable at 1.6%, which is also down 0.1 percentage points from last month's forecast.
Author: Ricardo Aceves, Senior Economist