The jobless rate has reached an eight-year high in the Czech Republic, climbing to 8.7% in November, up from 8.5% the previous month. Last year, the jobless rate in November was 8%.

Analysts say November’s increase is due to the weak economy, layoffs of seasonal workers and the failure to create new jobs.

The inflation rate in the country also slowed from 3.4% year-on-year in October to 2.7% in November, mainly due to the cheaper cost of motor fuel.

Czech National Bank board member Kamil Janá?ek told local press: ‘Demand inflation pressures from the domestic economy are nonexistent at present. For us, the main inflation threat would be a continued increase in agriculture commodities on world markets. It’s quite evident that domestic demand, with a high probability, won’t represent an inflation threat in the next three or four quarters.’