Czech inflation falls
The Czech statistics office based in Prague, has reported the annual inflation rate has dropped to 0.2% in August from 0.3% recorded the previous month. Falling food, energy and alcohol prices have fuelled the drop, as inflation falls across Eastern Europe and stabilizes across the eurozone. The recent drop in the Czech Republic continues the declining trend, as inflation has fallen from 7.5% inflation in January last year.
The Czech National Bank has reported that falling inflation is not enough to warrant another interest rate reduction, and the bank is predicting that inflation will continue to fall throughout 2009 and into 2010. The official Czech unemployment rate rose to 8.5% in August, while the economy may shrink up to 3.6% this year.
Currency rates for the Czech koruna are currently at 25.48 per euro and 17.5 per US dollar.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.