The Czech National Bank assessed that annual inflation rose as expected to 1.9% in August from 1.7% in July, mainly because of sharply higher fuel prices. It expects inflation to exceed 2% in September and potentially rise further before temporarily surpassing 3% at the start of 2027, warranting increased caution in monetary policy. Fuel prices increased more than 7% month on month and 26% year on year, adding almost 0.3 percentage point to annual inflation, while food prices fell 4.3% year on year and reached their lowest average level in two years. Core inflation remained at 3%, its highest level in a year, with services inflation still elevated at 4.4%. The central bank expects core inflation to stay close to 3% in the coming months and cited core price developments and global energy and food pressures as drivers of the elevated 2027 outlook.
2026-09-10Czech National Bank
Czech National Bank sees inflation temporarily exceeding 3% in early 2027 and signals greater monetary policy caution
The Czech National Bank expects inflation to rise above 2% in September and temporarily exceed 3% in early 2027, prompting greater monetary policy caution. August inflation reached 1.9% as surging fuel prices outweighed falling food prices, while core inflation remained elevated at 3%.