PRAGUE Dec 9 Czech November inflation which
brought price growth to 1.5 percent, the highest level since
June 2013, is a pro-inflationary risk to the bank's current
forecast, the bank said.
The central bank's forecasts, a key driver for the expected
timing for the bank to exit its weak-exchange rate policy, saw
November year-on-year inflation at just 1.0 percent. It sees
inflation returning to the bank's 2 percent target in the third
quarter next year.
The bank said the November price jump was mainly driven by
food prices, and also by core inflation.
"This indicator of core inflation reflects the positive
effect of continued growth in the domestic economy and
accelerating wage growth," the bank said.
"The published figures represent an inflationary risk to the
CNB's current forecast, which assumes that the exchange rate
will be used as a monetary policy instrument until mid-2017."
The bank has pledged to keep the crown on the weak side of
27 per euro at least until the end of March next year, and
forecasts exit from the regime around mid-2017.
(Reporting by Jan Lopatka; Editing by Jason Hovet)