RPT-POLL-Czech Oct CPI seen hitting more than 5-1/2-yr high

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* WHAT: October consumer inflation, unemployment

* WHEN: November 8, 0800 GMT

* Consumer prices seen up 0.4 percent month-on-month, up 3.8 percent year-on-year. End-October unemployment seen at 5.9 percent.

By Mirka Krufova and Marek Petrus

PRAGUE (Reuters) - A rise in natural gas and food prices probably lifted Czech inflation to its highest in 5-1/2 years in October, according to a Reuters poll, which gave weight to the market's view that interest rates will head higher.

Fourteen analyst groups in the survey gave a median forecast for a 0.4 percent month-on-month increase in the consumer price index (CPI) , a broad gauge of inflation targeted by the central bank (CNB).

The consensus forecast put annual inflation at 3.8 percent, up sharply from 2.8 percent in September for the highest rate since 3.9 percent in February 2002.

The jump will bring price growth within sight of the upper edge of the 1 percentage point comfort zone either side of the CNB's 3 percent target, justifying policymakers' tightening bias.

"For monetary policy, it will be key what the crown does," said Jan Vejmelek, chief analyst at Komercni Banka, whose forecast for 4 percent October inflation rate was the highest in the survey.

"If the crown allows, the CNB will raise rates already in November. After all, 4 percent headline inflation and accelerating core inflation -- we estimate it to be higher by half a percentage point -- are good enough reasons to hike."

The inflation data are due for release on Nov. 8, along with end-October unemployment numbers. The analysts' median forecast was for the jobless rate to dip to a new decade low of 5.9 percent of the workforce from September's 6.2 percent.

The CNB board left interest rates unchanged for a second consecutive month last week in the face of the crown's rally to lifetime highs against both the dollar and the euro. The crown peaked at a record of 26.82 per euro last week and traded at 26.885 late on Tuesday, nearly 7 percent firmer since hitting this year's lows in early July.

The currency's strength has tamed market expectations for interest rate rises on expectations it will contain inflation and hamper growth in the Czech Republic's very open economy.

The CNB hiked its main rate by 150 basis point between October 2005 and August 2007 to 3.25 percent as it strove to contain building price pressures in an economy expanding at about 6 percent annual clip for the third year running.

Markets are generally bracing for one more quarter-point rate increase by January at the latest.

TABLE OF FORECASTS FOR DATA DUE OUT IN NOVEMBER..[ID:L30358202]

(Reporting by Mirka Krufova and Marek Petrus; Editing by Gerrard Raven)

Keywords: CZECH ECONOMY/