Slowing Czech inflation will ease pressure on koruna

Czech's July CPI decreased another 0.2% after June's one tick decrease. The prices are not reflecting the strong domestic demand. 

The core prices should virtually stagnate, the food prices are to continue their seasonal decrease. The headline price level will be dragged down by fuel price as the global oil price slumped during the summer. 

"Overall, the consumer prices should decrease 0.2% while the yoy inflation is to decrease to 0.4%", says Societe Generale.