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CNB's Kubelkova Says January Inflation a ‘Big Uncertainty’

CZECHIA

The traditional January increase in prices of goods and services is a “big uncertainty” that played a role in the Czech central bank’s latest policy deliberations, CNB board member Kubelkova said in an interview to Seznamzpravy.cz.

  • The central bank’s forecast includes projections of January price changes, but the repricing may be “significantly higher,” according to Kubelkova. While the disinflation trend will resume early next year, “for now, we are concerned” about January price changes, she added.
  • Kubelkova mentions wage growth, energy prices among inflation risks for next year and says that the expected rapid inflation easing next year will result in real wage growth, which may support household consumption.
  • See the full interview here.
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