Domestic Inflation

Even if domestic inflation in the third quarter of this year increased slightly, to continue was located well below the objective of the Czech National Bank. Downside cost factors from abroad, but already beginning to fade, and next year their effect wears off. Core inflation indicator, the so-adjusted inflation excluding fuels, while it remains clearly positive. It manifests itself in a positive domestic economic growth and wages. Inflation is due to the above factors will continue to increase and the monetary policy horizon, ie in late 2017 and 2018, slightly exceeds two percent inflation target.

Monetary-policy relevant inflation, ie inflation adjusted for the first-round effects of changes to indirect taxes, will the overall inflation to deviate only slightly. Even if monetary policy and inflation will be at the monetary policy horizon slightly exceeded 2% goals.

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