CEE ECONOMY-Czech inflation eases to fifteen% in March, lowest in virtually a 12 months – thqaftqlm

CEE ECONOMY-Czech inflation eases to fifteen% in March, lowest in virtually a 12 months

April 13 (Reuters)Czech headline inflation slowed to a fee of 15.0% in March, falling a second-consecutive month to its lowest since April final 12 months, though staying excessive sufficient for the central financial institution to keep up its hawkish tone on rates of interest.

Client costs rose by 0.1% month-on-month, as anticipated in a Reuters ballot, whereas the year-on-year decline was a contact lower than a forecast of 14.9%. The statistics workplace stated a drop in gasoline costs and a excessive base in 2022 have been elements behind the slowdown.

The Czech Nationwide Financial institution (CNB), which sharply hiked charges by 675 foundation factors to 7.00% between June 2021 and June 2022 to fight worth development, had anticipated headline inflation at 14.8% in March.

It’s relying on a drop into single digits within the second half of the 12 months, but it surely has not but shifted away from speak of one other potential fee hike towards possibilities of cuts.

With inflation nonetheless working excessive, most central European policymakers are pushing again towards fee lower expectations.

“March inflation didn’t deliver any surprises even for the CNB,” UniCredit economist Patrik Rozumbersky stated. “The CNB’s focus will stay targeting wage development, which might revive issues of accelerating charges.”

Statistics workplace knowledge from Romania on Thursday additionally confirmed still-high worth development of 14.53% final month.

March knowledge from Hungary on Wednesday confirmed inflation easing lower than anticipated to 25.2%, backing expectations that the financial institution’s base rate of interest of 13% – the very best within the European Union – would stay elevated.

Headline inflation in Poland additionally stayed above 16% final month, in accordance with the preliminary knowledge launched earlier.

Central Europe’s economies are all going through stronger inflation than within the euro zone, with excessive meals costs a significant component.

Czech central financial institution Governor Ales Michl referred to as market bets on the timing of fee cuts untimely after the final coverage assembly on March 29.

Two new financial institution board members have been quoted as saying in numerous media interviews on Thursday that fee cuts couldn’t occur till inflation was decrease.

(Reporting by Jason Hovet in Prague; Enhancing by Sharon Singleton)

((jason.hovet@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.

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