In May, inflation accelerated and returned above the CNB’s 2% target. The price level increased due to food being more expensive. Core inflation also recorded sound dynamics and fuel prices significantly contributed to overall price growth as they followed oil price development on global markets. The koruna depreciated amid the risk-off mood of May and joined the pro-inflationary pressures. Today’s statistics contribute to the picture of an earlier rate hike. We still count on November, but the probability of a rate increase in August is rising, Komerční banka says.  

Healthcare 2.0 initiative invites to a panel discussion, which will take place on Wednesday, June 20, 2018 at 3 pm in the NHÚ AV ČR building, Politických vězňů 7, Praha 1, 2nd floor, room no. 7. 

CPI accelerated to 2.2% in May after 1.9% in April. While this was mainly due to the effect of higher food and fuel prices, prices of services also accelerated by 2.8%. Inflationary pressures tied to strong wage growth and a weaker Czech koruna favour a rate hike at the end of June