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Fiala Warns Against Speculation on Upcoming Budget Measures

CZECHIA
  • PM Fiala is set to announce his government’s final proposals for reducing the state deficit in around a month’s time, according to a press statement made late yesterday. Fiala also warned that until the full release is made, no working materials released to media can be considered relevant – likely referring to the VAT reform considerations reported this week.
  • A CTK poll of economists found the unification of VAT rates could lead to a one-off increase in inflation of as much as 1 percentage point. CTK also reported that the coalition leaders are yet to consider the full VAT proposals.
  • Unemployment rate data is the sole release due Wednesday – expected to drop to 3.8% from 3.9% previously. CPI and import/export prices indices cross tomorrow.

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