Consumer prices in the Czech Republic in June showed the highest
year-on-year growth in more than two years, rising by 2.9 percent
compared with June 2003, according to official figures released on
Monday. The price of goods and services was up in most sectors, largely
influenced by a rise in value added taxes earlier this year from five
to 19 percent. Cigarette and alcohol prices rose particularly in June.
For the first few months after January's VAT hike retailers had been
selling old stock at the same price as before but a 7.5 percent rise on
new stock kicked in last month. The overall rise in prices, the highest
since April 2002, was slightly below analysts' forecasts of three
percent. Compared to May, consumer prices rose by 0.2 percent in June,
also slightly below predictions of 0.3 percent.