Inflation slows down to record low 1.2 % in June

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The Czech inflation rate slowed down from 2.5 percent in May to 1.2 percent in June, the lowest figure since September 1999. In a month-on-month comparison, consumer prices fell by 0.3 percent in June, which was the fourth consecutive monthly decrease. Both the monthly and annual slowdown of inflation was caused mainly by the strong crown as well as a fall in prices of foodstuffs, non-alcoholic beverages and fuel.

The Czech inflation rate slowed down from 2.5 percent in May to 1.2 percent in June, the lowest figure since September 1999. In a month-on-month comparison, consumer prices fell by 0.3 percent in June, which was the fourth consecutive monthly decrease. Both the monthly and annual slowdown of inflation was caused mainly by the strong crown as well as a fall in prices of foodstuffs, non-alcoholic beverages and fuel.

Analysts predict that the slowdown in inflation will continue in the following months and pave the way for the central bank to cut the interest rates.

In July, experts expect inflation to fall below one per cent and then probably to start growing again but not above 1.5 per cent at the end of the year.