Czech Central Bank Faces Pressure to Tighten as Inflation Rises

Czech National Bank's traditional scepticism towards expansionary fiscal policy could further support tightening monetary policy, according to ING.

Headline inflation picked up slightly to 1.9% year-on-year in August and gained 0.3% month-on-month, driven by fuel prices.

The regulated price segment is starting to lift off as distributors begin to pass elevated oil and natural gas prices on to customers.

ING estimates that annual core inflation has landed at 3% in August, above their original assumption, with imputed rents being the main culprit.