Czech Inflation likely accelerated in March due to higher fuel prices

In the first two months of the year, Czech inflation stayed slightly above zero at 0.1% yoy. 

In March, it is expected to have accelerated slightly to 0.3%. On a month-on-month basis, consumer prices to have increased by 0.2%, mainly driven by higher fuel prices, which recovered to some extent after the huge falls posted in previous months (+4.5% in March), says Societe Generale.

Core prices have increased strongly since November 2014 on seasonally adjusted basis (+0.61% cumulatively), and they are likely to come in 0.10% higher in March (-0.12% non-SA). In yoy terms, core prices likely increased by 1.15%, which is significantly into positive territory. This is one of the factors discouraging central bankers from adjusting the EUR/CZK floor upward.