Czech Republic: Inflation rises to highest level in 10 months
November 9, 2011
In October, consumer prices added 0.26% over the previous month, which contrasted the 0.17% fall observed in September. The monthly rise reflected higher prices for food and non-alcoholic beverages as well as for clothing and footwear. As a result of the monthly jump, annual headline inflation climbed from 1.8% in September to 2.3% in October, overshooting both market expectations and the Central Bank's estimate, which had inflation rising to 2.1%. The reading represented the highest level since December 2010 and, consequently, inflation overshot the Central Bank's target of 2.0% ( 1.0 percentage points), after four consecutive months of inflation hovering below target. The Central bank revised its inflation forecast for this year to 2.0%, which is slightly below the previous estimate of 2.3%. For 2012, the Bank sees inflation rising to 2.8%, which is below its previous 3.2% estimate.
Author: Ricardo Aceves, Senior Economist