Inflation record low, in line with expectations

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The Czech inflation rate in July stood at 0.6 percent year on year, which is the lowest level in the Czech Republic's history. In monthly terms, the consumer prices grew by 0.5 per cent.

The inflation development is accord with the Czech National Bank's prediction from the previous month. The Central Bank said the all-time-low of year-on-year consumer price index was mainly due to a very slow lifting administrative price regulations. Besides, the decline in consumer prices was due also to extremely low prices of food and fuels, while the other categories showed a growth of 2-3 per cent. The trend was also backed by a strong crown and strong competition on the market, said the central bank.