The figure substantially exceeded the market expectations. The market consensus was +0.2%. The annual growth in producer prices reached 3.5%.
The December outcome was influenced especially by higher growth in prices in oil, food and tobacco sectors. This information is unfavorable from the point of view the development of consumer prices in coming months.
Further marked increase in producer prices is expected also in January. The m-to-m growth in PPI could reach about one percentage point.
Furthermore, the Czech Statistical Office also released the December development of agricultural prices that reached 0.6% y-to-y. This is the first annual growth seen in 1999. In November the agricultural prices dropped 3.3%.
Today released figures made the future cut in interest rates unlikely.