INSTANT VIEW 1-Czech July annual CPI slows unexpectedly

...2.5 percent a 
month earlier. 
**************************************************************** 
KEY POINTS: 
(pct change)          July        June         July forecast 
 month/month          0.4         0.3           0.5 
 year/year            2.3         2.5           2.6 
 
 CENTRAL BANK FORECAST: 2.5-2.6 percent annual CPI rate for July 
envisaged in its most recent projection unveiled in July. 
 
 (Details of July inflation data.................[nPRA001427] 
 (Details of July jobless data...................[nPRA001428] 
 
- The monthly rise comes on the back of a 14.1 percent seasonal 
jump in package holiday prices. 
- Regulated rents up 1.9 percent, natural gas prices up 1.6 
percent. 
- Tobacco prices gain 2.0 percent, the seventh consecutive month 
of gains following increases in tobacco excise taxes by the 
government. 
- Fuel prices rise 0.8 percent on the month, slowing the pace of 
their increase versus previous months. 
- Food prices down 0.5 percent month-on-month. 
- Apparel prices fall 2.1 percent and footwear prices drop 2.7 
percent on summer discount sales. 
 
BACKGROUND: 
- The central bank increased the key two-week repo rate by 25 
basis points to 3.00 percent  in July. 
- Report on last Czech c.bank rate decision      [ID:nPRA001407] 
 [ID:nPRA001420] [ID:nL03817639] [ID:nL26800751] [ID:nL03732730] 
- 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 
3.5-4.9 percent year-on-year in June 2008 and 3.5-4.9 percent in 
December 2008, consumer inflation net of impact of indirect tax 
changes rising 2.6-4.0 percent year-on-year in June 2008 and 
3.0-4.4 percent in December 2008. 
 
LINKS: 
- For further details on July 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                       
 
 

[PRAGUE/Reuters/Finance.cz]