INSTANT VIEW 3-Czech real wage growth slows to 3.1 pct y/y

    PRAGUE, Nov 29 (Reuters) - The Czech real average wage rose 
3.1 percent year-on-year in July-September, slowing from the 3.9 
percent pace in the previous quarter, data released on Wednesday 
showed. 
    Analysts said real wage growth had yet to fuel inflationary 
pressures in the economy, but added this year's revival in 
consumer spending, fed by steady wage increases and borrowing, 
would likely spark an interest rate increase next year. 
     
KEY POINTS: 
(y/y change in pct)    Q3/06    Q2/06   Q1-Q3/06  Q1-Q3/05 
 real change            3.1      3.9      3.6       3.9 
 nominal change         6.1      6.9      6.6       5.7 
 
 (Full table of Q3 data...........................[nPRA001053]) 
 
- In the corporate sector, real wage increases by 3.2 percent. 
In the public sector, the real wage gain amounts to 2.4 percent. 
 
COMMENTARY: 
    ALES MICHL, ANALYST, RAIFFEISENBANK, PRAGUE 
    "High wages, together with record-breaking credit expansion, 
can bring nothing other than buying fever at shops. 
    "Within 12 months, we should expect two interest rate 
increases, each by 25 basis points. So far, we expect the first 
hike to occur in the first quarter of 2007." 
     
    PETR DUFEK, ANALYST, CSOB BANK, PRAGUE 
    "Wage growth slightly lagged our expectations but the 
overall trend did not change. Wage growth does nothing to 
undermine competitiveness of the Czech economy, nor does it fuel 
any inflationary pressures. So there is no reason for any CNB 
(central bank) action. This is good news for the market." 
     
BACKGROUND: 
- Oct producer prices figures                    [ID:nL14825898] 
- Oct consumer inflation figures                 [ID:nL08914052] 
                                                 [ID:nL08889199] 
- Sept industrial output figures                 [ID:nL08849213] 
- Report on last Czech c.bank rate decision      [ID:nL26548848] 
                                                 [ID:nPRA001007] 
  
LINKS: 
- For further details on third-quarter wages and past data, 
Reuters 3000 Xtra users can click on the Czech Statistical 
Bureau's Website: 
    http://www.czso.cz/eng/csu.nsf/kalendar/2004-pmz 
 
- For LIVE Czech economic data releases, click on       <ECONCZ> 
- 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                <CZKVIEW> 
- Czech money guide                                      <CZK/1> 
- Czech benchmark state bond prices                   <0#CZBMK=> 
- Czech forward money market rates                      <CZKFRA> 
 
  ((Writing by Marek Petrus; Editing by Alan Crosby; 
prague.newsroom@reuters.com; Reuters Messaging: 
marek.petrus.reuters.com@reuters.net; +420 224 190 477)) 
  Keywords: CZECH WAGES/