Consumer prices rose 2.1 pct in 2018, driven by food, housing and transport costs

Consumer prices in the Czech Republic rose by 2.1 percent in 2018. It was the third highest average annual rate of inflation in ten years, according to the Czech Statistical Office.

The cost of basic necessities, such as food, housing and transport, accounted for the largest part of the increase, along alcohol and tobacco.

Consumer prices in December increased by 0.1 percent compared with November, driven mainly by price increases in food and non-alcoholic beverages.

The Czech National Bank has set an annual average inflation rate target of 2 percent and last year raised the base interest rate five times to tame inflation.

Bank governor Jiří Rusnok said further tightening of monetary policy is likely this year.

Author: Brian Kenety