In figures released by the Czech National Bank, inflation in June exceeds forecasts and shows significant increases in food and housing. The year-on-year increase was 2.7%, which is still significantly above the bank’s target of 2%. Photo credit: Zenon Moreau.
Brno / Czech Rep., Jul 15 (BD) – In June, consumer prices increased 2.7% year-on-year (yoy); this was slightly lower (-0.2%) than in May.
There were significant yoy increases in beer (+5.4%) vegetables (+22.7%), meat (+3.9%) and bakery products (+3.2%). These, however, were increasing at a slightly slower rate than in May. According to Czech Fund analyst Lukáš Kovanda in E15 the increases in potatoes, which are at an all-time high of 27 crowns per kilo, and beer are attributable to the drought last year.
There were also notable increases in housing: rents +3.9%, electricity +10.4%, gas +3.6% and water and sewage +2.6%. Miscellaneous goods showed increases in insurance of 3.9% and financial services 5.9%.
The main areas where there were actually decreases were clothing and footwear, which saw a drop of 3.1% and communications, which fell 1.3%.
Overall, the inflation figure (the average consumer price index for the previous 12 months) was 2.5%.
Eurostat has issued harmonised consumer prices numbers for May and these show an increase of 1.6%. Under this measure, the index for the Czech Republic rose 2.6%. Although not as bad as Hungary (+4.0%) and Slovakia (+2.7%), it is worse than the other neighbouring countries: Germany (+1.3%), Poland (+2.2%).
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