Czech pension increases to be costlier than planned due to inflation

The extraordinary but legally required pension increase to adjust to inflation will probably cost the Czech state more than 17 billion crowns this year, 5 billion crowns more than the Ministry of Labour and Social Affairs had projected.

Consumer prices in the Czech Republic continue to grow at an unusually high rate. In November, inflation rose 6 percent in annual terms, the biggest year-on-year rise since October 2008.

Department head Marian Jurečka has yet to announce how much more money the ministry will ask for in the budget negotiations this year, National Budget Council chairwoman Eva Zamrazilová said in a debate on Czech Television on Sunday.

Author: Brian Kenety