Czech's central bank's year end inflation projection likely has little chance to materialise

Czech Republic's November CPI dropped by 0.4% mom. The year on year rate dropped to 0.1%, a full 0.5 pp below the central bank's projection for the month.

While this moderation is led by sharp food and energy price declines, the central bank noted that core inflation was also being capped at this time by weak external prices from around the region.

"After this reading, we see little chance that CNB's year-end inflation projection of 0.8% yoy will materialize", says Commerzbank in a research note.