Retail sales are showing a lower growth rate over the last few months. Retail sales increased by 4.3% y/y (or 7.0% after a seasonal adjustment) in September. The main reasons are the lower growth rate for car sales and the decreases in fuel sales. However, domestic demand remains strong enough to attract the attention of the CNB. The Czech National Bank is in due course recognizing the strengthening of the Crown as one of its difficulties. The decrease in the unemployment rate, growing domestic demand and constantly higher inflation are arguments for an interest rate hike.