Czech Spending Holds Up Amid Softer Inflation

Czech retail activity remains robust in the non-food sector despite an Easter-related dip in April, while a softening inflation outlook supports current growth expectations. Continued expansion depends on the degree of impact from the ongoing Hormuz conflict.

Key Takeaways

• 1.Czech retail sales in April showed a year-on-year growth of 1.6%, suppressed by the early Easter effect, while non-food spending remained robust.
• 2.ING has lowered its inflation outlook for 2026 and 2027, citing lower Brent crude prices, a stronger koruna, and a benign CPI reading for May.

Table of Contents

• Easter effect shapes retail sales
• Non-food sales keep going
• Bullet-proof growth resilience would be a surprise
• Wage growth accelerated in 1Q26
• Inflation set to behave if the Hormuz conflict doesn't escalate
• Increase at turn of year reflects base effects

Document Preview

Page 1 of 1

Subscribe for full accessStart Free Trial