Czech National Bank Says Inflation Is Beginning To Ease Significantly

The CNB released its comments on February CPI inflation outturn, noting that "consumer prices adjusted for the first-round effects of changes to indirect taxes also rose by 16.7% year on year in February."

• "The February inflation figure was 0.2 percentage point higher than expected in the CNB’s winter forecast. Core inflation was in line with the forecast, whereas it slowed slightly year on year compared to the previous month."
• "Part of the expected annual repricing of goods and services was probably only reflected in February, and the previous downward deviation from the forecast in this consumer price segment has disappeared."
• "As at the very start of the year, administered price inflation lagged somewhat behind the forecast in February. Conversely, food price inflation was considerably faster than forecasted. Fuel prices were also slightly higher."
• "The first-round effects of changes to indirect taxes, capturing the impact of the increase in excise duty on tobacco on the prices of cigarettes, have so far been negligible."
• "Inflation is starting to decline significantly after a temporary acceleration in inflation in early 2023, linked mainly with a marked increase in administered price inflation. Inflation will fall to single digits in the second half of the year."
• Click here for the full statement.