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PPI Inflation Accelerates To 26.6% In April

CZECHIA
  • Last week, CNB member Holub reiterated in a statement that Czech rates may rise further in the coming meetings.
  • The CNB minutes from May 5 meeting showed that four policymakers pondered a 100bps hike, including Governor Rusnok (the other three were Mora, Benda and Holub).
  • CZK has been receiving strong support in recent days following CNB comments last week that it has been intervening in the FX market to support to koruna.
  • This morning, economic data showed that PPI inflation accelerated to 26.6% in April (vs. 25.5% exp.), its highest level since January 1992, up from 24.7% the previous month.

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