Inflation in the Czech Republic in September 2023 was 6.9 percent year-on-year, the Czech Statistical Office reported on Tuesday. These are better data than analysts predicted. In August, inflation in our neighbors was 8.5 percent year on year. A positive surprise also concerns Hungary, where price growth slowed down more than expected.
The Czech Statistical Office reported on Tuesday that inflation in the Czech Republic in September 2023 was 6.9%. Every year. This means further inhibition of price increases among our neighbors. On a monthly basis, consumer prices fell by 0.7%.
The data are better than expected. The market consensus, i.e. the median of analysts’ forecasts, assumed an increase in prices in September this year. by 7.5 percent
Inflation in the Czech Republic and Hungary
Pavla Sediva, head of the Department of Consumer Price Statistics, pointed out that this is the eighth month in which price increases have slowed down on an annual basis. “Inflation fell below 7 percent, the lowest level since December 2021,” Sediva pointed out.
According to the Czech office, further slowdown in price growth was mainly due to declines in the housing and food and non-alcoholic beverages sections. Growth electricity prices slowed down to 16.5 percent year on year, from 23.1 percent in August. In turn, growth natural gas prices slowed down from 34.5 percent. up to 12.5 percent
Commodity prices increased by 7%. year to year, and service prices by 6.7%.
Hungarian inflation is slowing down
On Tuesday, we also learned the inflation data Hungary. Prices on Lake Balaton increased by an average of 12.2% in September. Every year. For comparison, in August it was 16.4 percent. Analysts expected that inflation in Hungary would slow down to 12.5%. On a monthly basis, consumer prices increased by 0.4%.
Let us recall that according to preliminary reports data from the Central Statistical Office inflation in Poland in September 2023 was 8.2%, year-on-year. Compared to the previous month, prices decreased by 0.4%.
“A complete set of surprises”
Bank Pekao analysts wrote about a “set of surprises” in connection with the pace of inflation slowdown in Poland, the Czech Republic and Hungary. “Moreover, core inflation is in a downward trend in all three countries. The effect: next year, interest rates in all three countries will be lower than today,” said representatives of this bank.
“Both the Czech Republic and Hungary will see interest rate cuts this year. In Poland, rate cuts have already materialized,” they added.
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