Macro Analysis /
Czech Republic

Czech Republic: CPI inflation accelerates to 6.6% y/y in December, as expected

    12 January 2022
    • VAT waiver on energy sales still keeps headline inflation lower by 1pp
    • Food prices provide the biggest push to inflation in December
    • There is also pressure from various categories, reflecting lockdown effects, high energy prices
    • We see a greater probability for a 50bp hike on Feb 3, and another hike in March