PM and central bank head blaming each other for high inflation

The Fiala administration and the Czech National Bank are at loggerheads over who is to blame for  Czechia’s two-digit inflation. Announcing a revised macroeconomic forecast 2023, with a GDP growth of 0.5 percent and an average inflation of 11.2 percent, the central bank governor, Ales Michl, called for a responsible fiscal policy that would lower inflation. Prime Minister Fiala countered that it is primarily the task of the Czech National Bank to keep a rein on inflation. Michl is known for his stance against interest rate increases.