Inflation held at 2.7% in October, inline with estimates according to data released by the Czech Statistical Office.
Consumer prices in October increased 0.5% over September. Due to a price increases in ‘food and non-alcoholic beverages’ and in ‘clothing and footwear.’ Consumer prices increased by 2.7% in October as in September, year-on-year.
Year-on-year inflation remained at 2.7 percent in October. Higher rent, electricity, and other housing-related prices remained the main drivers of price growth. Food prices also increased. In month-on-month terms, prices recovered and rose by 0.5 percent, while for the first time in September this year, they fell by 0.6 percent.
According to analysts, annual inflation around current levels will remain in the rest of this year. It could rise above 3 percent at the start of next year. For the rest of this year, the average inflation will be 2.7 to 2.8 percent, economists said.
Electricity increased in October by almost a tenth, gas by 3.6 percent, heat by 5 percent, rents by 3.8 percent, and water and sewerage by 2.6 percent. People also experienced price increases in food, where prices accelerated year-on-year growth to 2.8 percent. Smokers also paid extra, tobacco products were 1.1 percent more expensive. They can expect further price increases next year when excise duties and tobacco and spirits should increase.
October’s annual inflation was 0.1 percentage point lower than forecasted by the Czech National Bank. Food prices increased slower than expected.
“Inflation will remain slightly below 3 percent for the rest of the year, reaching 2.8 percent this year, the highest level since 2012. Next year, prices should slow somewhat, but will stay close to tax thanks to tax changes 2.5 percent, “said ING chief economist Jakub Seidler.
In month-on-month terms, food prices grew. Mainly due to more expensive fruit by 7.4 percent. Vegetables dropped by 3.2 percent. Non-alcoholic beverages cost two percent more than September. Meat up a half percent, potatoes up 6.1 percent, butter up 7.8 percent, and sausages up 0.9 percent.
