Czech Republic: Inflation falls to lowest level since February 2022 in April
Inflation eased to 12.7% in April from March’s 15.0%. April’s figure marked the weakest inflation rate since February 2022. The reading was primarily due to a more moderate increase in prices for housing and utilities. In addition, price pressures for transportation dropped at a quicker pace. Moreover, prices for recreation and culture grew at a more subdued pace.
Annual average inflation edged down to 16.2% in April (March: 16.4%).
Lastly, consumer prices dropped 0.20% in April over the previous month, swinging from the 0.14% rise seen in March. April’s result marked the weakest reading since October 2022.
Commenting on the outlook, economists at ING, stated:
“The last CNB minutes sounded quite hawkish, mentioning risks from a potential wage-inflation spiral and tight labour market. Therefore, the expected decline in headline inflation should not be assumed as a signal for any CNB monetary policy loosening. We expect the CNB to keep interest rates unchanged until it is clear that not only headline inflation but also housing prices are contained.”