Total inflation and monetary policy inflation will continue to grow and at the monetary policy’s horizon will moderately exceed the 2% target set by the Czech National Bank (CNB). In 2018, inflation will return to the set target level. This stems from the IV/2016 Inflation Report made public by CNB. Domestic costs will grow significantly in the entire forecast horizon, due to higher wages and capital costs in the environment of continuing growth of economic activity. The anti-inflation effect of import prices caused by lower industrial producer prices in the Eurozone will fade away.