Inflation at 3.3 percent in June

Consumer price growth accelerated to 3.3 percent in June from 2.9 percent in May, the Czech Statistics Office reported on Friday. Czechs are paying more for food and housing as well as alcohol and tobacco. On the other hand, the prices of transport and telecommunications services have dropped slightly. The growth in inflation has exceeded the expectations of both the Czech National Bank and analysts. The central bank thus has no reason to consider further easing its monetary policy and is likely to tolerate a possible strengthening of the crown.