INSTANT VIEW 1-Czech Feb annual CPI rises in line with fcast

    PRAGUE, March 8 (Reuters) - Czech consumer prices rose by 
0.3 percent in February from January, causing the annual 
inflation rate to quicken to 1.5 percent in February from 1.3 
percent in January. 
    The figure left inflation below the 2 percent bottom of the 
tolerance band of the central bank's target with 3 percent 
mid-point, which was likely to cement market expectations of 
flat interest rates in the near-term. 
 
KEY POINTS: 
(pct change)          Feb         Jan          Feb forecast 
 month/month          0.3         1.0           0.3 
 year/year            1.5         1.3           1.5 
 
 (Details of Feb inflation data..................[ID:nPRA001184] 
 
- The monthly rise comes mainly on the back of a 3.3 percent 
increase in tobacco prices because of a delayed impact of 
tobacco tax hike in April 2006, which added 0.1 percentage point 
to the monthly increase in overall consumer prices (CPI). 
 
BACKGROUND: 
- The central bank held the key two-week repo rate steady at 2.5 
percent  in February. 
- Report on last Czech c.bank rate decision      [ID:nPRA001176] 
                                                 [ID:nL01449456] 
- The central bank (CNB) targets headline inflation which it 
seeks to keep at 3 percent year-on-year, allowing for 
fluctuations by plus/minus one percentage point from this level. 
- The CNB's quarterly prediction sees consumer prices rising 
2.4-3.8 percent year-on-year in December 2007 and 2.8-4.2 
percent in June 2008. 
 
LINKS: 
- For further details on February other past inflation data, 
Reuters 3000 Xtra users can click on the Czech Statistical 
Bureau's website: 
    http://www.czso.cz/eng/csu.nsf/kalendar/2004-ISC 
 
- For LIVE Czech economic data releases, click on        
- Instant Views on other Czech data                 [CZ/INSTANT] 
- Overview of Czech macroeconomic indicators            [CZ/ECI] 
 
- Key data releases in central Europe    [CEE-CONVERGENCE-WATCH] 
- For Czech money markets data click on                 
- Czech money guide                                       
- Czech benchmark state bond prices                    
- Czech forward money market rates                       
 
 ((Writing by Marek Petrus; Editing by Alan Crosby; 
prague.newsroom@reuters.com; Reuters Messaging: 
marek.petrus.reuters.com@reuters.net; +420 224 190 477)) 
  Keywords: CZECH ECONOMY/INFLATION