The finance ministry announced an overview of changes of regulated prices for 2001. According to the scenario natural gas prices for households should increase by 24.1%, electricity (14%), rents (4%), heat (7%), water and sewerage (12%), telephones (5%), railroad (10%), bus transport (8%), city transit (7%), postal services (1.5%) and drugs (1%). The overall impact on inflation should amount to approx. 2%. However, some prices need not to be adjusted to the maximum available level. We expected an impact to reach the similar level as this year, 1.6%.
Tomorrow, the Czech statistical office and Labor ministry will release the first set of economic indicators, CPI, net inflation and rate of unemployment. We forecast that CPI increased by 0.2% (Reuters poll consensus: 0.3%), m-o-m, and 4.4% (consensus: 4.4%), y-o-y, in November. Net inflation forecast point to 0.2 (consensus: 0.3%), m-o-m, and 3.4% (consensus: 3.5%), y-o-y, in November. The rate of unemployment should remain unchanged at 8.5% (consensus: 8.5%) in November.
Trading at the FX market was nervous yesterday and the Czech koruna was pushed by technical factors to the range 34.49-34.75 during the day. However it settled at 34.94 late on Wednesday. Against the dollar the Czech koruna firmed to 39.41 from 39.58 on Tuesday.
Bonds had another quiet day on Wednesday. Activity was on record minimum, situation typical for approaching Christmas. Thursday will most probably be as quiet.
Current benchmark prices: MoF 6.75/05 99.00-30 (unchanged), MoF 6.30/07 94.00-30 (unchanged), MoF 6.40 91.85-15 (unchanged).