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Inflation Eases More Than Forecast, Constitutional Court Delays Verdict On Pension Reform

CZECHIA
  • The koruna took a hit as Czech CPI readings for December missed expectations. Headline inflation decelerated to +6.9% Y/Y from +7.3% prior, while the median estimate in a Bloomberg survey was +7.3% and the CNB pencilled in +7.0%. In addition, prices fell 0.4% M/M despite expectations of a flat reading. The central bank will comment on the data at 12:00GMT/13:00CET.
  • The parliamentary Committee on Constitutional and Legal Affairs for the fourth time adjourned a debate on a asset-split bill, which would pave the way for an overhaul of power utility CEZ. The Committee said it needs input from the government amid a discussion on how to ensure that minority shareholders retain more influence over asset splits.
  • The Constitutional Court heard the testimonies of ministers as well as various economic experts on the government's reforms slowing the automatic pension increases. The Court said it will continue hearing the case behind closed doors in the coming weeks, without setting any date for the announcement of the verdict.

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