The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Czech inflation accelerated more than expected in May, supporting expectations of one more large interest rate hike before less hawkish leadership takes over the central bank.
Consumer prices rose 16% from a year earlier, driven mainly by cost of housing and food, the statistics office in Prague said. The reading exceeded the median estimate of 15.5% in a Bloomberg survey and was above the central bank’s 14.9% forecast for the month. The biggest inflation jump since December 1993 is largely caused by shocks from abroad, but policy makers also see a quick spill-over to costs of most goods and services. With an overheating labour market fuelling wage demands, the central bank has lifted rates by cumulative 5.5 percentage points over the past year and it may add another 75 basis points or more this month.