Czech National Bank governor expects inflation at 3 pct in 18 mths
The recent acceleration of the Czech Republic’s inflation is rather the result of the coincidence of two factors and will soon end, Czech National Bank governor Zdenek Tuma said at the Euromoney Conference in Vienna today.
“We expect that within 12 to 18 months, inflation will again be around 3 percent,” Tuma said.
The Czech Statistical Office said recently year-on-year inflation accelerated to 5.4 percent in December from 5 percent in November.
Tuma described the growing food and energy prices across the world and the effect of the country’s internal reforms as the main inflationary factors at present.
“The main reasons are only temporary and so is the acceleration of inflation. The central bank does not consider the adoption of any extraordinary measures as necessary,” Tuma said.
He said he believed wage growth will remain under control and will have only limited effect on inflation.
The impact of a possible U.S. recession would also have only little effect on the Czech banking market, according to Tuma.
(Czech News Agency)
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