Special factors contribute to near zero consumer price inflation
Prices barely rose at all in the Czech Republic during January according to figures released by the national statistics office. Year-on-Year inflation dropped to 0.2 percent from December’s 1.4 percent. That is the lowest level since October 2009. Prices climbed just 0.1 percent between January and December, a level that has not been seen since 1993, the office added. One-off factors such as sharp drop in electricity and gas prices, were among the reasons for the weak price rises. Some analysts say that the figures are clear justification of the Czech National Bank’s November move to boost the economy through currency interventions to weaken the crown. The central bank says it is waiting for more representative figures for February to give it a better idea of inflation trends.