After hitting a high for the year so far in March of 3.8 percent, annual inflation fell back in April to 3.5 percent as the rate of price increases for food and non-alcoholic drinks slackened slightly.

Preliminary data shows the Czech Republic’s trade balance in March ended in a record high of Kč 37.5 billion, up Kč 14.5 billion year on year (y/y), the Czech Statistical Office (ČSÚ) said Monday, but analysts see little reason to celebrate given the foreign trade dynamics.

Declining confidence among manufacturers and those in import-export outweighed slight rises in the construction, services sectors and among consumers with the composite confidence indicator falling for the first time since December.

The prices of food and non-alcoholic drinks rose for the seventh month in a row, helping to push Czech consumer price inflation in March to 3.8 percent, its highest level so far this year.