Prague - The Czech Republic's year-on-year inflation rate slowed and unemployment remained steady in June, according to government data released Tuesday that slightly beat market expectations.

Inflation slowed to 6.7 per cent in June, from 6.8 per cent in the previous two months, mainly due to slower growth in tobacco prices, the Czech Statistical Office said.

The inflation rate reached a nine-year peak of 7.5 per cent in January, a hike caused both by a set of government policies and growing food and energy prices.

Consumer prices in June grew 0.2 per cent compared to May mainly due to higher prices for fuel, rent and some foodstuffs, the statisticians said.

The country's unemployment rate remained at 5 per cent in June, a 10-year low first recorded in May, the Labour and Social Affairs Ministry said.

The economy in the former Soviet satellite has boomed in recent years following an influx of foreign car and electronics makers, with accompanying labour shortages. (dpa)