Czech inflation likely unchanged in February, to remain muted until start of Q4

Czech Republic's CPI in February is likely to have remained unchanged. Fuel prices are likely to have dropped after decline in oil prices. The core elements have accelerated enough to counter this, whereas food and administered prices are not likely to differ considerably from January's level. On year-on-year basis inflation is expected to have eased from 0.6% to 0.4%, partially because of the impact of lower core inflation.

Inflation is likely to remain muted until the start of fourth quarter. Price growth is expected to accelerate during the end of 2016 because of base effects. Meanwhile, lower inflation is will help alleviate   pressure on the Czech National Bank's exchange rate floor that is projected to increase after the ECB's expected rate cut.