Finance ministry boosts growth and inflation forecasts

30-01-2017

The Czech Ministry of Finance has increased its inflation expectations for this year to 2.0 percent from its previous forecast of 1.2 percent on Monday. One of the reasons is the stronger rise in prices seen at the end of last year. Two percent annual inflation is the target of the Czech National Bank which would allow it to drop its low crown policy, a major step which is not seen happening earlier than mid-year. The ministry boosted its growth forecast for this year to 2.6 percent from 2.5 percent with 2018 growth expected to fall back to 2.4 percent. Unemployment is seen largely unchanged this year.