Actual (October): 0.0% mom; 2.6% yoy
Consensus: 0.1% mom; 2.7% yoy
Previous (September): 0.3% mom; 2.4% yoy
Producer prices did not change last month. Stronger CZK exchange rate helps to reduce import prices of commodities and raw materials (oil, gas, basic metals, and chemical materials). On the other hand, rising agricultural prices led to inflation in food industry.
Today’s PPI release can be seen as neutral from the monetary policy standpoint. Capacity usage in the domestic economy remains low enough not to generate any price pressures, inflation is, thus, mainly imported or related to weather conditions.