Central Bank of the Czech Republic: inflation may exceed 10%

Inflation in the Czech Republic in January may rise to 9%, and in the horizon of the next few months it will briefly exceed 10%. This statement was made on Wednesday, 12th of January, 2022 by the Director of the Foreign Exchange Division of the National Bank of the Czech Republic Petr Kral.

Two days earlier, the opinion that the inflation rate in the first months of the year could reach 10%, was expressed by a member of the Board of the Central Bank, Alesh Mihl.

In a similar vein, the head of the Central Bank, Jiří Rusnok, spoke in a special video message. According to his forecast, inflation is likely to exceed 9% in the first quarter of 2022. A sharp rise in electricity and gas prices will have a strong impact on this indicator – the largest energy companies changed their tariffs a few months ago, but they began to operate only from the new year.

However, the chief banker of the Czech Republic assured residents that there is no cause for concern. According to him, the regulator has instruments of influence – the inflation rate will gradually decrease and reach 2% by the beginning of 2023.

On Wednesday fresh statistics on inflation was released: in December it updated a 13-year high maximum and reached 6.6%.