Deloitte Real Index provides data about real prices of flats in Prague and regional cities. It collects data only from realised sales of flats which were registered in the Real Estate Cadastre in the form of purchase contracts. It compares results with the previous quarter and contrasts prices in the segments of new development, panel buildings and brick buildings.

In September, Czech consumer prices declined below the market expectation as well as below the CNB forecast. Apart from seasonal changes, this was mainly caused by lower prices of food. For the coming months, we expect inflation to continue subsiding. The CNB will wait and see while the financial market speculates on rate cuts.

The second round of the 1/3 Senate elections was dominated by the centrist and right-wing parties that form the opposition to the central government – the Mayors and Independents, Civic Democrats and Cristian Democrats – who won 18 out of the 27 seats available. The government coalition parties (the ANO and Social Democrats), on the other hand, failed miserably, winning just one seat. The Social Democrats even lost their own senatorial club after the election.

The Czech government introduced a new set of measures yesterday due to the surge of Covid-19 infections. Measures are focused mainly on limiting gatherings of people, impacting restaurants, culture events, sports and related services. We revise our 2020 GDP forecast to -7.5% from -6.5%