The Consumer Price Index rose 0.5 percent in May while both market consensus and Patria Finance estimate expected 0.4 percent. Y/y inflation stayed at 6.8 percent, same as last month. One of the worse-case scenario seems to be taking place: after the staggering January rate, the inflation was expected to start descending from the top back to the base camp, i.e. towards the CNB inflation target. However, oil and food prices proved to be an obstacle for the inflation descent and we are thus facing the risk of rising inflation expectations. As a consequence, they could translate into higher wage demands and thus lead to higher prices. The CNB faces an uneasy task to try to fend off this scenario while the economic growth starts slowing down and the CZK rate has not been exactly in line with the economic development lately.