Czech consumer prices edge up 0.6% y/y in August 2014, beat expectations

By bne IntelliNews September 9, 2014

Consumer prices in the Czech Republic edged up by 0.6% y/y in August 2014 slightly accelerating from 0.5% y/y in July mainly due to a faster growth in food prices, data from the statistics office showed. The reading exceeded expectations of analysts polled by CTK news agency who projected annual inflation to stay at 0.5%.

In monthly terms, consumer prices ticked lower by 0.1% in July, in line with market expectations, and following a 0.2% m/m hike in June.

Housing and utilities charges (27% of the basket) stayed unchanged on the month keeping the annual drop at 0.8% in August. The annual contraction was mainly due to a 10.4% decline in electricity prices, while natural gas charges increased by 2.4% y/y and rents by 1.1% y/y.

The annual growth in food and non-alcoholic beverage prices (17% of the basket) accelerated to 1.3% in August from 0.8% the month before reflecting more expensive rice, eggs, vegetable fats and citrus fruits.

Transport prices inched up 0.1% m/m helping keep the annual growth at 0.6%.

The August annual inflation was 0.2pps above the the central bank’s forecast for the month but stayed below the lower band of its target range of 1%-3%. The indicator has been running below the central bank’s target for months forcing the bank to launch in November the first in more than a decade foreign currency interventions to weaken the koruna and stave off the threat of deflation. The weak but still positive growth in the first eight of 2014 confirms that the bank’s decision to use the exchange rate as an additional monetary policy instrument significantly contributed to averting the deflation threat. The bank has said it will exit the weak-koruna regime no earlier than in 2016. Weakening the koruna became the central bank’s primary policy tool after it slashed its main two-week repo to effectively zero in 2012.

  Aug-14 y/y  July-14 y/y  Aug-14 m/m 
Total 0.6 0.5 -0.1
Food and non-alcoholic beverages 1.3 0.8 -0.6
Alcoholic beverages, tobacco 2.5 3.3 -0.5
Clothing and footwear 3.5 3.1 -0.5
Housing, water, energy, fuel -0.8 -0.8 0.0
Furnishings, households equipment and maintenance -0.5 -0.5 -0.1
Health -1.3 -1.5 0.1
Transport 0.6 0.6 0.1
Post and telecommunication -4.1 -3.2 -0.4
Recreation and culture 1 0.7 0.6
Education 1.5 1.5 0.0
Restaurants and hotels 1.8 1.7 0.1
Miscellaneous goods and services 1.6 1.3 0.4
Source: Stats office      

Related Articles

EU asks CEE to comment on Russian gas promises

The European Commission has invited comments from Central & Eastern European states on proposals put forward by Russian gas giant Gazprom to meet competition concerns. Visegrad and the Baltic ... more

Poland struggles in bid to oust Tusk

The Polish government spent March 6 canvassing for support for its alternative candidate for the European Council presidency to compatriot Donald Tusk. However, it met little success, even in its own ... more

EBRD says 2016 net profit was around €1bn

The European Bank for Reconstruction and Development (EBRD) said it made a net profit of around €1bn in 2016, up by a quarter from the €802mn it made in ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss