Czech Services Inflation Bolsters Cautious Interest Rate Stance

Czech inflation slowed more than expected in November but the closely watched measure of services prices remained elevated and will likely reinforce the central bank’s cautious monetary policy stance.

Consumer prices increased 2.1% from a year earlier, undershooting the 2.5% median estimate in a Bloomberg survey and the central bank’s 2.2% projection for the month, the statistics office said in a preliminary reading on Thursday. Volatile food and energy costs were among key drivers of the slowdown, while services inflation remained at 4.6%.