Czech prices likely dragged by food and fuel

Czech Republic's CPI (%) month on month basis is expected by the market consensus to be dropping by 0.1% in the month of November, compared to that of previous month's 0.0%.

The CPI (% yoy) is expected to rise slightly and come in at 0.4% by the consensus. CZSO survey say that fuel prices dropped further in November in response to the global price of oil. 

The food prices also lag behind the developments abroad, the dairy products stay on a downward trajectory because of EU's milk quota abolishments. This outweighs the fruit and vegetables inflation, as seen in the agricultural prices.

"Core prices should grow only modestly. All in all, the overall price index should drop by 0.2% mom. Yoy inflation should add one tick to 0.3% thanks to the positive base effect", says Societe Generale in a research note.