Friday May 16, 10:28 AM
Czech central banker says Czech Republic to remain low inflation economy UPDATE
(Update adds quotes, background)
PRAGUE (Thomson Financial) - The Czech economy is to remain a low inflation economy despite the current high prices which are only a one-off fluctuation, a Czech central bank deputy said.
In an online interview, Mojmir Hampl also said the current spike in inflation is no reason to expect that prices should remain high.
'The Czech economy will remain low inflation economy as it was in the past,' Hampl said.
'This year is nothing but a one-off 'ripple', which will dampen.
'Do not form your inflation expectations based on this extraordinary deviation,' he said.
Hampl also said the labour market in the Czech Republic is 'relatively' tight but is likely to ease in the course of the year following a decline in the country's economic expansion.
'The Czech labour market is relatively overheated... But thanks to the expected and already announced slowdown of the economy, the labour market will start subsiding,' he said.
Annual inflation eased to 6.8 percent in April from 7.1 percent the previous month, and was just 0.1 percentage point above the bank's forecast, but far above its target of 3 percent with a wider range of 2 percent to 4 percent.
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