Czech central bank says May CPI a downward risk to predict

PRAGUE: Czech consumer prices grew less than expected in May mainly due to a drop in phone bills, fuel prices and a slow seep-through of a January hike in cigarette taxes, the central bank said on Monday.

"The data are an anti-inflationary risk to the current Czech National Bank forecast," it said.

The bank expects inflation slightly below its 2 percent target midpoint throughout this year, assuming a drop in market interest rates this year and their growth in 2014.

The bank cut its main interest rate to 0.05 percent last November, and it has repeatedly said it may intervene in the market to weaken the crown currency if it needs to ease policy further.