Czech Republic: Inflation rises less than expected in February
March 9, 2011
In February, consumer prices added 0.09% over the previous month, which was well below the 0.69% increase observed in January. The reading reflected higher prices for food, as well as for alcoholic beverages and tobacco, which were offset by lower prices for clothing and footwear. As a result of the subdued monthly increase, annual headline inflation inched up from 1.7% in January to 1.8% in February, resuming the upward trend that was only briefly interrupted in January. The annual reading surprised private sector analysts, who had seen inflation rising to 2.0%, as well as the Central Bank's forecast that inflation would rise to 2.1%. The Central Bank expects inflation to rise to 2.3% in the final quarter this year before inching down to 2.2% in the fourth quarter of 2012.
Author: Ricardo Aceves, Senior Economist