Year-on-year inflation rose to 2.6 percent in October - the fastest growth this year

Year-on-year inflation rose to 2.6 percent in October, the fastest growth so far this year, the Czech Statistical Office said on Tuesday. Inflation had reached 2.2 percent in September. The main reason for the jump was higher fuel costs. The Czech National Bank had surprised the markets last week by raising rates a quarter point, to 2 percent, in an effort to curb inflationary pressures. Many economists now predict inflation could reach 4 percent next year and expect the central bank to raise interest rates another quarter point in January.