Czech Republic: Inflation edges down in February
Latest reading: Inflation inched down to 2.7% in February from January’s 2.8%, marking the weakest inflation rate since September 2024. Looking at the details of the release, softer price pressures for transportation slightly outweighed a faster increase in prices for food and non-alcoholic beverages.
Accordingly, annual average inflation was unchanged at January’s 2.5% in February.
Lastly, consumer prices increased 0.19% over the previous month in February, coming in below January’s 1.32% increase.
Panelist insight: Commenting on the outlook, Kevin Daly and Basak Edizgil, analysts at Goldman Sachs, stated:
“Looking ahead, our views on the underlying trend of Czech inflation remain dovish. We continue to expect services inflation to follow core goods inflation lower, and Czech inflation to decline significantly from Q2 onwards.”