Czech inflation hits 2 year high

Inflation in the Czech Republic hit a two-year high of 3.2 percent year-on-year in July, official figures showed Monday. The July numbers surprised financial markets and compare with a year-on-year inflation rate of 2.9 percent in June. The latest figures increase the chances of further rate hikes in the Czech Republic. In June, the central bank moved interest rates up by 25 basis points from a record low level of 2 percent. As inflationary pressures mount, analysts say, interest rates are likely to rise further. Most local analysts now expect a further rate hike, probably of 25 basis points, in August or September. Other data released Monday showed unemployment rising to 9.2 percent in July after an 8.8 percent jobless rate in June.