Inflation hits 16 percent mark, analysts expect another interest rate hike

Inflation jumped to 16 percent in May, accelerating from 14.2 percent in April, according to data released by the Czech Statistics Office. The cost of housing, food and fuel continues to rise, and analysts predict a further increase this and next month. Inflation is now at its highest since December 1993, when prices rose by 18.2 percent year-on-year.

Analysts are predicting that the Czech National Bank will respond to the latest data with another significant hike in interest rates.

Speaking on Czech Television on Friday, the Vice-Governor of the Czech National Bank Tomáš Nidetzký sai that infaltion will continue to rise in the coming months.