The Czech National Bank (CNB) released a commentary to the inflation rate statistics on 8 January. According to the commentary, after purging the data of the tax growth influence the inflation rate increased at 2.4 per cent from year to year in December. Still, the rate stayed within the inflation tolerance. The increase of the inflation, however, slowed down in three consecutive months. The reason is the steadily drop of economic activity. The source of the inflation in the last year was the growth of taxes and the growth of the consumer prices (primarily food).
The CNB also expects that due to the tax changes the inflation rate would stay 1 per cent above the inflation tolerance in the years 2013 and 2014.
For further information, click here (CNB press release).