Some Notes on Inflation in the Czech Republic between 2015 and 2025

The inflationary burden and inflationary potential of a currency can be estimated either by analysing monetary policy and other macroeconomic data, or by using comparative analysis procedures in the case of identifying past inflationary burdens and estimating them on the basis of recent monetary policy actions in the case of future developments. This paper follows the latter method. Data for the Czech koruna compared to the Polish zloty, the Hungarian forint and the euro are used as comparative bases, and the US dollar and the Swiss franc are also examined in a partial way. The paper is designed as a set of notes on the subject. It cannot be seen as a comprehensive analysis based on sufficient research. However, it concludes that the Czech koruna has historically been burdened with an inflationary potential of roughly 0.5 to 1.5 percentage points relative to the major currencies. Thus, with the same monetary policy, inflation on the koruna reaches the higher values described above. The explanation for this phenomenon is historical and relates to the structural fundamentals of the Czech economy.