Economic policy / Macroeconomic Indicators, Economic Growth
This section reports on economic policy initiatives of the Czech government, the EU, and other entities that have a direct impact on the competitiveness of the country. It also includes information on economic priorities of the AmCham and other leading associations.
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Spotlight issue
Producer prices surprised with a marked drop
Production price indices recorded a surprising drop. Producer and agricultural prices have slumped in particular. On the other hand, construction prices continued moderate growth while prices of market services increased distinctively. Producer and agricultural prices thus added to the disappointment represented by February’s consumer inflation. Although we assume the central bank will continue to hike interest rates, it may be possible it will choose a time out in May given previous inflationary developments, according to Komerční banka.
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The share of unemployed surprised with a stronger decline
The share of unemployed has turned south again after taking a two-month break. In February, it cut two ticks. The number of vacancies keeps growing and is approaching the number of reachable unemployed. That corroborates the view that the situation on the labour market is extremely tight, which should be visible in the wage statistics for 4Q17 released tomorrow. We expect an increase on the back of a surge of salaries in the public sector, Komerční banka says.
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