Czech wage growth dips to 10-year low
Prague- Czech real wages rose the least in 10 years during the second quarter, the government said on Wednesday, spurring speculation that the country's central bank will further cut interest rates.
The average monthly wage rose to 23,182 koruny (1,393 dollars) from April to June, up 1.1 per cent year-on-year when adjusted for rising consumer prices, the Czech Statistical Office said.
Czech wages have expanded at a record pace in recent years following an influx of foreign investment and resulting labour shortages.
Nominal growth of monthly wages peaked at a revised 10.2 per cent in the first quarter of 2008, the data showed, although the gain was slimmed to 2.6 per cent by inflation.
Analysts expect consumer spending to remain weak, which could allow the Czech central bank to give a boost to the cooling economy rather than fight rising prices.
"The central bank will be able to cut rates, perhaps as soon as September," said Vladimir Pikora, chief economist for Next Finance, a consultancy.
The bank cut the country's key two-week repo rate to 3.5 per cent on August 7, despite high inflation, to fight a rapid appreciation of the Czech koruna.
Czechs earn higher wages than other post-communist central Europeans - Hungarians, Poles and Slovaks - but incomes still lag behind those in western Europe. (dpa)