Czech inflation falls surprisingly in September

by   CIJ Linguistics
2020-10-13   07:00

The rate of inflation in the Czech Republic fell unexpectedly in September from 3.3 percent in August to 3.2 percent. The Czech National Bank had expected prices to be 3.6 percent higher than they were a year ago. Just as remarkable for economists is the 0.6 percent fall in prices compared to August, which is the largest month-to-month drop in 14 years. This drop is being blamed in part on the end of the holiday season. One reason the low inflation rates are surprising is that last September's figures were already quite low. Overall, it appears that the pandemic is hurting demand so much that it could bring prices below the 2 percent goal set by the Czech National Bank in 2021. At the moment, economists expect 2020 to end with inflation of roughly 3 percent.