After lengthy consultation with both sides of Industry, the Czech Ministry of Labour and Social Affairs has proposed that the national minimum wage should rise on January 1st 2017 by 11.1% from CZK 9,900 ($US407) to CZK 11,000 ($US452) a month. This is a compromise between the trade unions target minimum rate of CZK 11,400 and the employers’ call for the new minimum to be limited to CZK 10,600. In April 2016 the annual rate of consumer price inflation (HICP) in the Czech Republic was 0.5%. The National Bank has forecast this will rise to 2.2% by Q3 of 2017. However, the bank’s expectation is significantly in excess of the recent prediction made by the European Commission. This saw inflation rising to just 1.4% next year. Either way, the proposed minimum wage increased will only fuel inflation, especially if it influences wage bargaining across the economy.