Fuel price surge has not yet fully impacted inflation

The rise in fuel prices following the outbreak of the war in Iran, has yet to be reflected in inflation data and is expected to impact figures in April, analysts told the Czech News Agency.

Consumer price growth is therefore likely to continue accelerating in the coming months from March’s 1.9 percent, according to economists. Experts say the key factors shaping inflation in the months ahead will be the duration of the conflict in the Middle East and developments in energy prices.

If the war lasts for several months and energy prices remain elevated or continue to rise, inflation could at least temporarily move above the Czech National Bank’s tolerance range, according to Raiffeisenbank analyst Martin Kron. The Czech National Bank’s tolerance range stands between one and three percent.