Czech inflation came in at a slightly stronger-than-expected 0.4% y/y last month, as an easing of the decline in food prices more than offset a steeper decline in fuel prices. The bigger picture, however, is that inflation remains subdued and is likely to remain so. Accordingly, while we don’t expect a further loosening of monetary policy, the MPC is likely to stick to the dovish stance seen at the last Council meeting.
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