Inflation & Prices

Czech Inflation Above Forecast Blurs Outlook for Rate Cuts

  • Consumer prices rise 2.2% from year earlier on food, services
  • Core inflation quickens to 2.4%, above central bank’s outlook
Customers shop at fruit and vegetable stalls in Prague.Photographer: Milan Jaros/Bloomberg
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Czech inflation was faster than expected in August, complicating policymakers’ deliberations about the pace of further monetary easing.

Consumer prices rose 2.2% from a year earlier, matching their July increase, according to data published by the statistics office on Tuesday. The Czech National Bank said the reading exceeded its 1.8% forecast for the month mainly on volatile food costs, while the closely-watched core measure was also above its projections.