Telecom prices influence Czech
inflation.
by MEDIA CONTACT RESOURCES, INC.
According to a July 12, 2005 report on the AFX news wire (AFX is
the business wire of Agence France-Press), the end of a phone company
sales promotion had an impact on the country's inflation rate. AFX,
reporting from Prague, said that as a result of the end of a "free
minutes" promotion, telecom prices surged 15 percent.
This was enough to push the Czech Republic's year-on-year
inflation rate up from 1.3 percent in May 2005 to 1.8 percent in June
2005, the steepest increase in inflation since January 2005.
Other price increases did, in fact, contribute to the increase in
inflation. AFX said that prices for food, non-alcoholic beverages, and
transportation also rose.
The month-on-month increase in the rate of inflation was 0.6
percent, the difference between the May 2005 rate of inflation and the
June rate of inflation.
AFX cited information developed by the Czech Republic's
statistical office.
The end to the promotion, interestingly enough, was ordered by the
country's telecommunications regulator.
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