Growing tension on the labor market is leading to a more rapid increase in salaries. The real estate market is at the same time overheating.
This is based on the minutes of the Czech National Bank (ČNB) Board’s session from August 3, 2017, according to which the board discussed why this development is not reflected in more significant inflationary pressures.
Most bank board members agreed that even though the domestic economy is driving towards higher inflation, which is also reflected in the growth of core inflation, the outside environment has an anti-inflationary effect.
