The Czech National Bank estimated that January inflation would reach almost ten percent. Now her prediction has been confirmed. It reached 9.9 percent.
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The reason for the rise in inflation is the increase in energy prices, which was reflected in the resumption of VAT payments for households. The change in the price lists of goods and services and the increase in the price of food also had an impact. “Consumer prices have risen by almost 10 percent compared to January last year. This is the most since July 1998, when year-on-year price growth reached 10.4 percent. Housing, fuel and food prices had the greatest impact on the level of the January year-on-year index, “says Pavla Šedivá, Head of the Consumer Price Statistics Department of the Czech Statistical Office.
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Electricity prices moved from a 15 percent decline in December to 18.8 percent growth in January due to the abolished tax pardon, and natural gas prices went from a 7.9 percent decline to 21.5 percent growth.
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Real estate and household maintenance products also rose – namely by 13.4 percent (by 10.3% in December), we pay more for heat and hot water (by 12.0%, by 1.9% in December, solid fuels ( by 15.7%, in December by 8.9%).
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In the food and non-alcoholic beverages section, the growth of prices of bakery products and cereals accelerated to 9.4 percent (6.6% in December), prices of products in the milk, cheese and eggs group accelerated to 7.2 percent (5.9% in December), oil and fat prices rose to 25.9 percent (24.7% in December) and fruit prices moved from a 3.7 percent decline in December to a 1.7 percent rise.
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Economists predicted that inflation would rise sharply in January. According to them, it could have approached the 11 percent mark. However, they estimated its rate at 9.8 percent on average, while in December it was 6.6 percent.
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“In the area of expected inflation, two macroeconomic outlooks were issued by the Ministry of Finance of the Czech Republic and the CNB, which equally pointed to the expected average inflation this year at 8.5 percent. Both outlooks both expect a decline in price growth in the second half of this year, “said Pavel Peterka, chief economist of the Roklen Group.
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