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Inflationary Pressures To Remain Elevated in H2

CZECHIA
  • European Commission President Ursula von der Leyen will meet Czech Prime Minister Andrej Babis in Prague to discuss the country's recovery plan according to Bloomberg (news conference scheduled for 10.45am London time).
  • Even though inflation is still standing below the 3% CNB upper tolerance band, inflationary pressures could continue to intensify in the second half of this year amid consumer demand combined with accelerating wage growth.
  • Next CNB meeting will take place on August 5, and policymaker are very likely to raise the benchmark rate by another 25bps to 0.75%.
  • Next economic to watch will be PPI inflation coming out on July 20 (expecting to increase to 5.9% YoY in June).

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