INSTANT VIEW 1-Czech June CPI inches up in line with forecast

...inflation rate to rise to 2.5 percent from 2.4 
percent a month earlier. 
 
KEY POINTS: 
(pct change)          June        May          June forecast 
 month/month          0.3         0.4           0.3 
 year/year            2.5         2.4           2.5 
 
 CENTRAL BANK FORECAST. 1.8-2.2 percent annual CPI rate for June 
envisaged in its most recent projection unveiled in April. 
 
 (Details of June inflation data.................[nPRA001389] 
 (Details of June jobless data...................[nPRA001390] 
 
- The monthly rise comes on the back of a 2.1 percent rise in 
tobacco prices, the sixth consecutive month of gains following 
increases in tobacco excise taxes by the government. 
- Fuel prices rose 1.3 percent on the month, the fifth month of 
increases. 
- Food prices up 0.2 percent month-on-month. 
 
BACKGROUND: 
- The central bank increased the key two-week repo rate by 25 
basis points to 2.75 percent  in May. 
- Report on last Czech c.bank rate decision      [ID:nPRG000403] 
                                 [ID:nL28398864] [ID:nL10648783] 
- 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 June 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