In May, inflation accelerated and returned above the CNB’s 2% target. The price level increased due to food being more expensive. Core inflation also recorded sound dynamics and fuel prices significantly contributed to overall price growth as they followed oil price development on global markets. The koruna depreciated amid the risk-off mood of May and joined the pro-inflationary pressures. Today’s statistics contribute to the picture of an earlier rate hike. We still count on November, but the probability of a rate increase in August is rising, Komerční banka says.