Czech producer prices decline more-than-expected in November

Czech Statistical Office on Friday released producer prices data for November which came out lower than anticipated. Figures from the Czech Statistical Office showed Czech industrial producer prices fell 1.3 percent year-over-year in November, exceeding economists' expectations for a decrease of 1.1 percent. However, it was slower than the 1.7 percent fall in October.

Largest declines were seen in the prices of energy which declined by 3.3 percent annually in November. Data shows that producer prices have see consecutive declines every month since January 2014, except in August 2014, when they remained unchanged.

"We expect PPI growth will return above zero already in January. This is good news from the perspective of central bank as it should support further acceleration of inflation rate. Recent significant appreciation of US dollar should even strengthen this effect. To sum up, we expect PPI growth of around 2% in 2017." said KBC Bank in a report.