Today, the Czech Statistical Office is going to announce data on wages in the 1Q07. Data on tax collections and social and health insurance collections indicate a significant acceleration in rate of growth of salaries. According to our estimate, the average wage in the Czech Republic increased by 9.0% y/y nominally or by 7.3% in real terms. This rapid growth in wages is paralleled by the high growth rate of retail sales, showing the significant impact domestic consumption is having on GDP growth in the 1Q07.