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Czech annual inflation accelerated in March to a rate of 0.2 percent, higher than central bank's forecasts and staying above zero despite the impact of a global oil price slump. On a monthly basis, consumer prices rose 0.1 percent.
The headline figures were just below analysts' expectations although annual inflation picked up after sitting at a rate of 0.1 percent in the previous three months and added to signs the economy was gathering pace.
The economy grew 2.0 percent in 2014 and is expected to accelerate this year.
The central bank launched interventions to weaken the crown in late 2013 when the economy was just limping out of a record-long recession and has pledged to keep its weak crown policy in place at least until the second half of 2016.
March's annual inflation data was was above the central bank's prediction of a 0.1 percent reading.
The statistics office said year-on-year inflation was mainly influenced by faster price growth of alcohol and tobacco products.
"Inflation should avoid negative readings this year, which were expected in the beginning of it," Jakub Seidler, ING Bank Czech chief economist said.
"Given the favourable economic development, which will have pro-inflationary effects on the monetary policy horizon, we do not expect the central bank to move its exchange rate commitment to a weaker level."
The central bank has said it would tolerate negative inflation in 2015 but also warned it could move the crown to a weaker level if an increase in long-term deflationary pressures risked undermining domestic demand.
Analysts in a Reuters poll had expected prices to rise by 0.2 percent on the month and by 0.3 percent on the year.
Earlier this week, another report showed the Czech foreign trade balance reached a 18.0 billion crowns ($707.24 million) surplus in February, beating market expectations. Analysts saw that as a favourable sign for the industry output data, due on Friday.

Copyright Reuters, 2015

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