ČNB: Inflation will remain above 2% target, GDP growth above 3%

Published: 13.02.2018 Related countries:  Israel Israel

The economy will remain above its potential output level.

Inflation in the Czech Republic will stay above Czech National Bank’s 2% target and will return to it at the start of the monetary policy horizon. The central bank informed in its Inflation Report I/2018 that overall inflation pressures remained strong, mainly reflecting accelerating wage growth amid robust growth of the domestic economy. According to the prediction, the growth of the Czech economy will slow from last year’s high pace, but will remain above 3% in 2018–2019. The increase in domestic economic activity will be driven mainly by robust growth in household consumption.