Inflation pressures on industrial producers will intensify in 2017. Raiffeisenbank’s analyst Daniela Milučká has commented on data from the Czech Statistical Office (ČSÚ) that she estimates that industrial producers’ prices will on the average grow by 2.2%. Komerční Banka’s economist Viktor Zeisel says that industrial producers’ prices are strongly affected by oil prices on global markets. Oil soared to USD 55 per barrel in early December 2016. ING Bank’s chief economist for the Czech Republic, Jakub Seidler, believes that the decline of producers’ prices has subsided and will help keep inflation close to the central bank’s 2% target. Exchange rate commitment may thus be terminated in Q2 2017.
