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Czech Ind. Prod. (Nov.) & CPI (Dec.)

The sharp fall in Czech inflation last month, to just 0.1% y/y, was due to both base effects and the impact of lower oil prices on fuel inflation. There is a risk that the headline inflation rate could slip into negative territory over the coming months. However, the strength of November’s industrial production figures suggests that policymakers are unlikely to take any immediate action.


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