CNB's Tuma sees higher inflation this year

Czech inflation will tick higher this year due to changes in the value added tax agreed by the ruling coalition last week, Central Bank Governor Zdenek Tuma said on Sunday 8 February.

Tuma said on Czech state television that the changes would boost inflation to about 3.5 percent to 4.0 percent at the end of this year from the Central Bank forecast of 3.3 percent in a quarterly inflation update last week.

Three parties in the centre-left government struck a deal to cut the basic value added tax