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Support For CZK Remains Strong Despite Elevated Inflationary Pressures

CZECHIA
  • Yesterday, economic data showed that inflation accelerated to 17.2% in June, its fastest rate in three decades, up from 16% the previous month.
  • The CNB mentioned that core inflation was also surprisingly strong, accelerating to 14.6%.
  • New CNB member and deputy Governor Zamrazilova mentioned in an interview that she sees signs of factors that may tame Czech inflation in the medium term (i.e. fiscal policy, wages…).
  • This morning, industry ministry Sikela said that Czech government will spend at least 30.6bn CZK on energy saving tariff.
  • Currency account came in slightly ‘higher’ than expected at -22.8bn CZK in May (vs. -25bn CZK exp.), down from -10.2bn CZK the previous month.

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