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Czech inflation rises to its highest level since 2008

The Czech inflation rate rose to 4.1% on an annual basis in August, the highest level since November 2008, up by 0.7 percentage points compared to the inflation level in July.

That rate is one percentage point higher than the Czech National Bank's current forecast, and is mainly driven by rising house prices, according to data published by the Czech Statistical Office, Baltic News Network reported.

Peter Krall, Executive Director of Cash Management at the Czech National Bank, said that inflation increased further, clearly exceeding the upper limit of the tolerance range compatible with the bank's goal, and consumer prices adjusted according to the effects of the first round of changes in indirect taxes increased by 3.9% year-on-year. last August.

Commodity prices rose by 3.6% on an annual basis and services prices by 4.9% on an annual basis last August.

In the housing sector, which had the greatest impact on inflation, the level of rents rose by 2.5 percent last August.

According to the Czech National Bank's summer forecast, inflation will increase above the upper limit of the tolerance range around the 2% inflation target during the second half of this year, due to the rise in food inflation, persistently high core inflation and strong fuel price inflation.

Domestic price pressures are expected to rise slightly, influenced by increased consumer demand and a gradual pickup in wage growth.