INSTANT VIEW 1-Czech April CPI beats fcast with 2.5 pct rise

...of 2.5 
percent from 1.9 percent a month earlier. 
    The figure returned to the central bank's tolerance band of 
one percentage point either side of a 3 percent target and was 
likely to lead markets to shorten the odds on an interest rate 
increase as early as this month. 
 
KEY POINTS: 
(pct change)          April       March        April forecast 
 month/month          0.7         0.3           0.4 
 year/year            2.5         1.9           2.2 
 NOTE. The central bank had predicted 2.1-2.2 percent inflation 
on an annual basis, according to its April Inflation Report. 
 
 (Details of April inflation data................[ID:nPRA001288] 
 (Details of April jobless data..................[ID:nL10317377] 
 
- The monthly rise comes on the back of a 1.6 percent rise in 
food prices, a 4.3 percent rise in fuel costs and 2.1 percent 
growth in tobacco prices because of a delayed impact of a sales 
tax hike. 
- Natural gas prices up 1.4 percent, heating costs 0.6 percent 
higher, regulated rents edge up 0.9 percent. 
- Clothing and footwear prices up 1.2 percent month-on-month. 
 
BACKGROUND: 
- The central bank held the key two-week repo rate steady at 2.5 
percent  in April. 
- Report on last Czech c.bank rate decision      [ID:nPRG000331] 
                                 [ID:nL26624395] [ID:nPRA001284] 
- 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 
3.2-4.2 percent year-on-year in December 2007 and 2.7-4.1 
percent in December 2008, consumer inflation net of impact of 
indirect tax changes rising 2.1-3.5 percent year-on-year in 
March 2008 and 2.2-3.6 percent in September 2008. 
 
LINKS: 
- For further details on April 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                       
 
  
  Keywords: CZECH ECONOMY/INFLATION  
    

[PRAGUE/Reuters/Finance.cz]