CNB says July's core inflation of 3.0% Y/Y was above the 2.9% outlook, the decline in food prices is relatively across-the-board

• Core inflation and global inflation pressures are still argumnets for increased caution in monetary policy.

The CNB has a track record of publishing its own forecast deviations after each print, and a core outturn above the bank's outlook is the kind of miss that has historically mattered more for the koruna and front-end rates than the headline number, since core is what the board treats as the policy-relevant gauge. The framing here is two-sided: sticky core and global price pressures argue for caution, while a broad-based decline in food prices pulls the other way, a combination that in past Czech episodes has tended to keep the board on hold and hawkish in tone rather than prompting an immediate shift in either direction. The CNB has on previous occasions been among the more cautious central European banks in easing cycles, and commentary stressing arguments for caution has typically preceded extended pauses. The mechanism to watch is the gap between the bank's own forecast path and realised core, since repeated misses of this kind have historically eroded the case for further cuts priced into the short end. The follow-ons are board member commentary in the days after the print and any revision to the bank's outlook at the next meeting, where the forecast-versus-outturn language usually hardens into a formal stance.