Czech Republic: Inflation slows in February from January
Latest reading: Consumer prices rose 1.4% in annual terms in February, following a 1.6% rise in the prior month. February’s reading was the weakest since October 2016.
Relative to the prior month’s figures, there were reduced price pressures for food and non-alcoholic beverages (+4.0% in annual terms vs +4.7% in January) and recreation and culture (+1.7% vs +2.5% in January). In contrast, price pressures were higher for transportation in February (-1.5% vs -1.6% in January). Finally, the change in housing and utilities prices was the same as in the prior month (+0.8% in February and January).
Lastly, consumer prices fell 0.10% in February on a month-on-month basis, following a 0.90% rise in the prior month.
Panelist insight: Commenting on the outlook, ING’s David Havrlant stated:
“Considering the tumultuous events in the Middle East, we have updated our inflation forecast. Higher crude oil and natural gas prices will eventually feed through all price domains. The weakening of the koruna against the dollar reinforces their increase. Fuel prices are affected almost immediately; food prices follow suit due to higher transportation costs and fertiliser prices.”