Czech headline inflation likely to have accelerated slightly in September

Czech headline inflation figure for the month of September is set to be released this week. According to a KBC Market Research report, the consumer price inflation is likely to have risen by one-tenth of a percentage point to 2.6 percent, surpassing the central bank prediction a bit.

The main inflation factor continues to be the rising costs of housing, including energy, which has been slow to respond to a significant rise in the price of electricity abroad.

“This time, we expect the price of food and other services to grow faster, too, reflecting a rapid rise in payroll expenses. In our opinion, inflation will tend to remain above the 2.5 percent threshold even in the months to come”, added KBC Market Research.