Export and Import prices decreased in February both 0.7%, thus, terms of trade stood at 100.0. Export prices were 5.0% down and import prices were 7.8% lower in year-on-year comparison.
The Czech cabinet might find a solution of Russian debt. The remaining debt, which the Russian federation owes to the Czech republic, USD 1.1bn, will probably be paid in following four years by supplies of goods. The goods include 2 to 3 giant airplanes An-70, military helicopters Mi-24, electricity, military equipment and nuclear fuel.
Ludek Niedermayer, CNB Vice Governor, said yesterday that the attitude on the currency markets has started to turn. There is a lot of short-term speculators on the market and if the development of the CZK changed, closing their positions would lead to very fast depreciation of the Czech crown. The turn could be also accelerated by low liquidity on the market.
The Hungarian cabinet came out with another election triumph. Just four days till second round of the poll, Fidesz - recently ruling party, suggested 4.5% increase of pensions in effect from June. Fidesz lost with the Hungarian socialist party in the first round. According to the plan, pensioners should have been paid the bonus for the whole year back from January.
Consumer prices in the USA rose 0.3% m/m following increase by 0.2% in January and February. Year-on-year inflation jumped to 1.5% from 1.1% in February. The rise was driven by mainly by energy prices, which were 8% up.
Industrial output in Germany rose in February for the third month in a row. In comparison with February, the output was 0.9% higher. Unlike in the Czech republic, Germany’s industrial output includes construction output, which helped the overall indicator up as it jumped by 12.6% in February.
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Radim Krejčí