According to the Czech National Bank (ČNB), inflation in the Czech Republic will reach 9% in January. At the same time, however, it does not rule out the possibility that it will be in double digits for several months at the beginning of the year. Petr Král, director of the ČNB’s monetary department, said this in response to Wednesday’s data from the Czech Statistical Office (CSO) on December inflation.
According to the ČSO, inflation increased to 6.6 percent in December, up from 6% in November. Such a high price increase was last seen in September 2008.
Inflation was one percentage point higher than the ČNB estimated in its November forecast. This is due to accelerating core inflation and, within it, rent growth, as in October and November, according to Král.
Thus, in its forecast for January, it estimates that annual consumer price growth will be around nine percent in the first month of this year.
“This estimate is shrouded in a high degree of uncertainty in the current conditions, as the usual overvaluation of goods and services may lead to an even higher increase in the price level at the beginning of this year. It cannot be completely ruled out that inflation will reach double-digit levels for several months at the beginning of this year,” added Král.
Inflation in the Czech Republic last reached double digits in 1998. It was 10.7 percent at the time.