Producer prices in the industrial sector declined, according to our estimates, by 0.5% in October. The main reasons for the decline should be the lower prices for gas and refinery products. The rolling 12-month inflation rate for producer prices is projected to drop to 1.5% y/y from the 2.4% rate in September.
We estimate that the deficit of the current account decreased to CZK 3bn in September from the CZK 14.3bn recorded in August. Behind this improvement is the balance of the foreign trade, which shifted from the deficit in August of CZK 2.1bn to a surplus of CZK 7.5bn. The main negative sector still remains that of foreign dividend payments and the reinvested earnings of international investors.