The Czech producer price index moved up by 0.5% in March and inflation rose to 3.6% y/y from February’s 3.2%. The inflation rate for producer prices came in above expectations and what is also of importance is the fact that prices are increasing in sectors which are not directly influenced by swings in the prices of oil and food. The core inflation rate (without fuel and energy) increased to 3.8%. Also, inflation in agriculture also accelerated and in March it reached 15%. If we take producer prices as one of the leading indicators of future consumer prices, today’s information clearly points to an interest rate hike later this year.