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CNB See Inflation Easing to Upper Bound of Tolerance Band in January

CZECHIA

The CNB have commented on November 2023 inflation data. Below are some selected highlights:

  • The year-on-year increase in consumer prices in November was still affected by the statistical effect of the lower comparison base in 2022 Q4.
  • Annual inflation was 0.2 percentage point higher in November than the CNB’s autumn forecast. This was due to a somewhat less pronounced slowdown in the year-on-year growth in administered prices.
  • By contrast, core inflation slowed slightly more markedly than forecasted. The year-on-year decline in fuel prices was also stronger than expected in the autumn forecast.
  • In January 2024, after the effect of the energy savings tariff drops out, annual inflation will decline sharply to the upper boundary of the tolerance band around the 2% target.

The full comments can be found here.

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