Czech Repubic Inflation Rates

(2009-2014)
3.50%

3.00%

2.50%
Series 1
2.00%

1.50%

1.00%

0.50%

0.00%
2009 2010 2011 2012 2013 2014

In the year 2009, the annual rate was 1.02%, which caused a severe economic
downturn, with GDP falling by 4.5%. Behind this drop were improved fiscal
performances, downward price pressures from increased global competition, improved
monetary policy frameworks, and central bank independence in many countries. This is
regarded as an important driving force in terms of potential outputs fall or its growth
slowdown. Czech republic suffered strong economic crisis and GDP to minimize the use
of carbon emitting fossils fuels that cause climate change.

In the year 2010, the annual rate was 1.47% which cause short term fluctuations
in the economy of headline in fluctuation of 2% is valid from January 2010 until the
Czech Republic’s entry to the euro area. If the central bank expects that inflationary
effects deviating inflation above the monetary policy should be tighter.
 In the year 2011, the inflation of Czech 1.25%, according to the reporter
monetary policy is expected to remain loose during most of 2011 as inflation pressures
limited by sluggish domestic demand and continuous appreciation of the Czech koruna,
despite a negative interest rate differential with respect to the euro zone. The Czech
central bank (CNB) had gradually cut its main policy rate from 3.75% in November 2008
to 0.75% in May 2010, undercutting the ECB rate by 25bp.

In the year 2012, the inflation rate was 3.28%, respectively. Czech government
increased VAT. Basic VAT was increased from 20% in 2012 to 21% in 2013 and
reduced VAT increased from 14% to 15% in 2013. Small enterprises sales decreased
by 21% from 2012 to 2013 as result of increasing VAT. Another problem is foreign
trade. The Czech Republic is considered an export economy (the Czech Republic has
strong machinery and automobile industries), however in 2013, foreign trade rapidly
decreased which led to many other problems and increase of state budget deficit.
In the year 2013, the annual inflation rate was 1.44% which caused by decreased
its economic stability and went through recession. This happens because the numbers
of individual suffered from unemployment were raised. Secondly the household incomes
including its consumption were fall from its stability. The income specifically from those
who were employed from a certain family wasn’t enough to cater for normal
consumption. Thirdly, the investors and those who perform corporate profit were not
able to penetrate their investment. All of these reasons mainly cause the fall of their
economy resulting to decreased of inflation in particular. The accommodation of basic
and most important means of livelihood has fall into its natural level. The exchange of
their monetary value from the market of labor has dropped and resulted to lower
economic sustainability.
In the year 2014, the inflation rate was 0.35% was still pressure under below
target of inflation but, their economic situation is already gaining momentum. The
government have found and create more sustainable ways in order to maintain the
conditions of macroeconomics stability. There ere policies made for recommendations
in order to focus and remain active in performing reforms for the field of nosiness
situation.