The producer price index increased by 1.2% m/m in January. Inflation in producer prices increased to 2.8% y/y from 2.6% in December. The prices of electricity and coal contributed the most to January's growth. However, inflation in producer prices has shown gradual increases even without the impact of the varying prices of energy resources or food production. Core inflation in producer prices (without energy and food) moved closer to three percent and remains a factor, which should slow down any consideration of a possible lowering of interest rates. The Czech National Bank could even start to increase rates in the second half of the year.