Inflation slows down

Czech inflation in May slowed down to 2.5 percent year-on-year from 3.2 percent in April, which is the lowest figure since 1999. The development is mainly due to a decrease in prices of foodstuffs, fuels, telecommunications and travel. Economic analysts predict that the inflation rate could drop below 2 percent in June and get close to one percent in July. However, in the second half of the year inflation might accelerate to 3 percent again. The Czech National Bank is expected to increase interest rates in order to prevent steeper inflation growth in the second half of next year.