Production price indices recorded a surprising drop. Producer and agricultural prices have slumped in particular. On the other hand, construction prices continued moderate growth while prices of market services increased distinctively. Producer and agricultural prices thus added to the disappointment represented by February’s consumer inflation. Although we assume the central bank will continue to hike interest rates, it may be possible it will choose a time out in May given previous inflationary developments, according to Komerční banka.

An article of E15 published on March 12 on steel and aluminum tarrifs (in Czech language). Last Thursday, the Trump administration announced its plan to place tariffs on steel and aluminum imports. The tariffs are intended to raise the production in US steel and aluminum plants to 80%, which is considered the minimum output necessary for survival. If the tariffs take effect, the EU has declared it will place reciprocal tariffs on US products of similar export value. The issue underneath the tariff decision- global overcapacity- is real, but imposing global tariffs does not appear to help solve the problem. An internationally coordinated response using targeted tariffs or quotas might be the best way to keep the economic and geopolitical damage to the minimum.