Lower food prices, cheaper gasoline and some seasonal effects influenced the price level in September. Figures matched market expectations and should not have significant effect. Annual inflation touched zero. While inflation disappeared for one or two months, it would be premature to discuss deflation and its side-effects in the Czech economy. Central bankers warned that interest rates could be cut once again, however, those words were aimed at the CZK exchange rate. Now, it came back close to 26.0 EUR/CZK and the CNB is likely to b happy with this level. Inflation should return close to the CNB’s inflation target next year and interest rates can stay stable for some time.