Actual (January): -3.3% y/y Consensus: -3.8% y/y Previous (December): -2.9% y/y Domestic demand seems to be surprisingly resistant. There is only falling demand for cars behind negative total figures. An explanation of this puzzle can be in a relatively strong increase in wages at the end of 2008. However, it is only a matter of time when quickly rising unemployment and wage adjustment begin to hamper household spending and retail sales. Fading domestic demand pulls inflation out of the CNB’s inflation target closer to zero and increases a likelihood of further monetary policy easing in months to come.