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Consumer Inflation Eases To +7.3% Y/Y, Gov't Considers Measures To Keep Food Prices In Check

CZECHIA
  • Czechia's CPI inflation cooled to +7.3% Y/Y in November from +8.5% prior, printing above the consensus forecast (+7.2%) and the CNB's projection (+7.1%). The sequential reading was +0.1% M/M versus the -0.1% median estimate in a Bloomberg poll of economists. The central bank will release its comments on inflation figures at 12:00GMT/13:00CET. The data came ahead of the Bank Board's final monetary policy meeting of 2023 slated for December 21, with policymakers still deliberating the optimal timing for the start of the rate-cutting cycle.
  • A fresh Kantar opinion poll showed that the share of voters dissatisfied with the situation in the country keeps increasing, with only 16% expressing satisfaction. ANO remains the most popular political party, boasting a support rate of 34.5%, widening the gap with Prime Minister Petr Fiala's ODS (12.5%). If the results were replicated in a general election, ANO would win 93/200 available seats in the Chamber of Deputies.
  • Transport Minister Martin Kupka threatened to take punitive measures against retail chains if they raise food prices next year despite the reduction of VAT on food items. Speaking with CNN Prima News, the official refused to rule out hefty fines and outlined plans to discuss possible measures with anti-monopoly regulators.

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