Retail sales fell once again. Reasons are still the same: rising unemployment, stagnating wages. Especially demand for durable consumption goods decreased. Sales of electronic appliances and other household equipment declined by 9.5% in real terms.
Weak domestic demand keeps inflationary pressures under the lid. CNB’s interest rates can stay at exceptionally low level. On the other hand, the CNB is likely to stay on hold as the EURCZK gave up its gains and helped to ease monetary conditions.