INSTANT VIEW 2-Czech August annual CPI 2.4 pct, in line

...inflation rate to 2.4 percent from 2.3 
percent a month earlier. 
**************************************************************** 
KEY POINTS: 
(pct change)          Aug         July          Aug forecast 
 month/month          0.3         0.4           0.3 
 year/year            2.4         2.3           2.4 
 
 CENTRAL BANK FORECAST: 2.5-2.8 percent annual CPI rate for 
August envisaged in its most recent projection unveiled in July. 
 
 (Details of August inflation data.................[nPRA001488] 
 (Details of August jobless data...................[nPRA001490] 
 
- Tobacco prices up 6.2 percent month-on-month, the eighth 
consecutive month of gains following increases in tobacco excise 
taxes by the government. 
- Foreign holiday prices jump 6.1 percent from July 
- Regulated rents up 1.2 percent on the month. 
- Fuel prices dip 0.3 percent on the month, the first fall after 
five months of growth. 
- Food prices down 0.4 percent month-on-month. 
 
COMMENTARY 
    JAN VEJMELEK, HEAD OF ECONOMIC AND STRATEGY RESEARCH, 
KOMERCNI BANKA, PRAGUE 
    "August inflation was no surprise, it was in line with 
expectations. However we fear a relatively significant 
acceleration of inflation, toward the end of this year and 
mainly in the first quarter of 2008." 
 
MARKET REACTION: 
    Crown currency unmoved at 27.58 to the euro . 
     
BACKGROUND: 
- The central bank increased the key two-week repo rate by 25 
basis points to 3.25 percent  in August. 
- Report on last Czech c.bank rate decision      [ID:nL30781459] 
                  [ID:nPRA001485] [ID:nL07203646] [ID:nL3044281] 
- 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, and 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 August 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