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Czech Republic's inflation, unemployment down in October

Business Materials 10 November 2008 17:57 (UTC +04:00)

The Czech Republic's inflation and jobless rates were down in October as the central European country braced for a fallout of the global financial crisis, government data showed Monday.

The annual inflation rate dropped to 6 per cent in October, from 6.6 per cent in September, mainly due to a slower rise in transport and food costs, the Czech Statistical Office said.

Analysts expect the country's inflation to drop by half next year, which would allow the central bank to further cut borrowing costs that have been the lowest in the European Union, reported dpa.

Another cut "could be anticipated early next year, in January or February", said Patria consultancy's chief economist David Marek.

The central bank slashed the benchmark two-week repo rate to 2.75 per cent on November 6 in a bid to boost country's slowing economy expected to cool further owing to falling demand amid the turmoil on world markets.

The country's unemployment rate based on a number of jobseekers registered with state labour authorities however fell to 5.2 per cent in October, from 5.3 per cent the previous month, the Labour and Social Affairs Ministry said.

Czech Prime Minister Mirek Topolanek said Monday that the Czech Republic does not face an immediate rise in unemployment but could see job losses later due to the crisis.

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