Prague - The ongoing financial reform is creating constant pressure on consumer prices. In April, prices in shops have risen by 0.4 percent in comparison with the previous month.
If compared to the previous years, they rose by 6.8 percent.
This data has been provided by the Czech Statistical Office (ČSÚ).
A slowdown is expected
What lie behind this increase are, above all, prices of housing, food, alcohol and tobacco, beverages, clothing and footwear, explained ČSÚ.
However, the growth of prices has slowed down since March when it equaled 7.1 percent.
"It is evident that the inflation rate is slowing down, however in the following months this slowing down will probably be very reluctant," explained Michal Brožka, an analyst from Raiffeisenbank.
Strong competition curbs inflation
"Risk of higher commodity prices will remain relevant. In addition, the last increase of consumer tax on tobacco has not yet had a chance to express itself," added Brožka.
However, he believes that we can expect the inflation rate to get below 6 percent in the fourth quarter of this year.
"The inflation is slowing down faster than was expected. The slowing down was influenced by seasonal factors potentiated by strong competition among supermarkets, but also among tobacco producers," explained Helena Horská from Raiffeisenbank.
