CZECHIA: CNB Comment on July Inflation Figures

The CNB have published a note commenting on this morning's inflation print:

• Annual inflation was 0.4 percentage point higher in August than the CNB’s summer forecast. This was due to stronger growth in prices of food, beverages and tobacco and, to a lesser extent, slightly higher growth in administered prices.
• Core inflation is being driven by wage growth in the domestic economy, which is affecting services prices in particular. By contrast, the previous protracted decline in domestic demand, driven by the CNB’s tight monetary policy, is dampening core inflation.
• Food prices continued to show a modest year-on-year decline due to the previous decrease in global agricultural commodity prices and domestic agricultural producer prices.
• According to the CNB’s summer forecast, inflation will be close to the central bank’s 2% target in the rest of this year and the subsequent two years.

See the full release here.