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Inflation Return Towards 2% Target Will Be Delayed By 6M (Benda)

CZECHIA
  • Yesterday, economic data showed that CPI inflation accelerated to 12.7% in March (vs. 12.4% exp), its highest level since May 1998.
  • The CNB also reported that Core inflation rose to a record 11.4%.
  • Inflation remains mostly driven by pandemic lockdowns, supply chain disruptions, overheating domestic labor market and Ukraine war shock.
  • Benda mentioned in an interview yesterday that Czech inflation return towards the 2% target will be delayed by half a year (to end-2023).
  • PM Petr Fiala and other government officials are scheduled to meet representatives of Czech employers and labor unions to discuss the economic impact of the war in Ukraine and infrastructure projects (BBG).

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