Industrial production's growth rate decelerated to 7.4% in August and discontinued the three-month run of double digit results. Cherchez le car again. Vehicle production dropped to its slowest rate in the last two years.
According to Patria’s estimates, the producer price index in September increased by 0.1%. The PPI was held down by decreasing prices for refinery products, countering the effect of increasing metal and metallurgy prices. Producer price inflation should decline to 2.6% y/y from 2.7% in August.
The current account deficit in August decreased, according to our projections, to CZK 18bn from CZK 23.5bn in July. While the current account balance should change minimally, the revenues deficit should decline following the main wave of income repatriation.