Inflation is quictly dropping in Europe as EUR/USD increases

Nobody expected such a result of inflation in our southern neighbors. The price increase in October in the Czech Republic fell to 15.1 percent, although the market expected a result of nearly 18 percent. What happened? All thanks to the government's anti-inflationary shield, which effectively cushioned energy prices.

In September, the annual dynamics of consumer CPI inflation in the Czech Republic increased to the highest level of 18% since the end of 1993. and thus became higher than the same measure of the inflation rate in Poland (+ 17.2%). Economists expected that in October the annual CPI dynamics in the Czech Republic would slightly decline to 17.9%.

"The marked slowdown in consumer inflation in October is mainly due to a significant decline in the annual growth of administrative prices as a result of government measures to absorb high energy prices," argues the Czech central bank.