By Leos Rousek

 
TODAY'S CALENDAR 
Local/GMT 
    N/A    Czech parliament to debate dissolution 
 1400/1200 Polish July net inflation data

Czech politics and Poland's July net inflation, stripping out volatile prices such as food and fuels, will be in focus Friday.

Lawmakers in the Czech lower house of parliament will start to discuss a bill to dissolve their chamber to pave way for an early election likely in October or November.

The dissolution bill is widely expected to garner the required support of at least 120 members of the 200-seat parliament but the timing of the early general election may be a thorny issue as some lawmakers may push for delaying it until mid-November to coincide with the 24th anniversary of student protests which led to the toppling of the country's former Communist regime.

The early election has to take place within 60 days after Czech president Milos Zeman signs the approved parliament dissolution bill into law. The legislature is expected to vote on the bill as early as next week.

Officials in the presidential office have said that Mr. Zeman may take up to 10 days to formalize the end of the legislature, making mid or late October another possible date for holding the early election.

The Polish July net inflation, a key reading of underlying core price pressures, is very likely to exceed 0.9% originally seen by analysts after the headline consumer price index reported earlier this week accelerated more than expected to 1.1% in July.

Since overall inflation still remains muted and markets already reacted to the headline reading, the net inflation data is unlikely to grab too much attention by investors.

 
EUR/CZK 
Latest 0150 GMT 25.773-844 
Previous 2150 GMT 25.769-835 
%Chg +0.03 
EUR/HUF 
Latest 0150 GMT 297.95-9.18 
Previous 2150 GMT 298.21-83 
% Chg +0.01 
EUR/PLN 
Latest 0150 GMT 4.2220-326 
Previous 2150 GMT 4.2205-315 
% Chg +0.03 
 
 
 
FIXED INCOME 
 
Hungary 
         Thu   Wed 
3 yrs   4.94%  4.82% 
5 yrs   5.49%  5.36% 
10yrs   6.29%  6.22% 
 
Poland 
         Thu*  Wed 
3 yrs    N/A  3.13%(1) 
5 yrs    N/A  3.67% 
10yrs    N/A  4.27% 
(1) 2 yrs 
*Polish markets closed for a national holiday 
 
Czech Republic 
         Thu   Wed 
3 yrs   0.40%  0.40% 
5 yrs   1.33%  1.35% 
10yrs   2.50%  2.44%(1) 
(1) 11 yrs 
 
 
STOCKS 
 
WIG 20 
2,461.22+18.92+0.77% 
 
BUX 
18,322.71-309.60-1.66% 
 
PX 
971.14-11.41-1.16% 
 
OTHER NEWS

POLAND: Poland's annual inflation rate was shown to have accelerated to 1.1% in July Wednesday, more than double the consensus forecast of 0.5%. Some analysts believe this is a load of rubbish. They're not doubting the veracity of the numbers. But they are looking at an unusual driver for this surge: garbage.

Owing to new rules, garbage collection costs have risen nearly 50% in Poland. Even though this accounts for a tiny sliver of the CPI basket, "such a huge jump" is estimated to have added around 0.4 of a percentage point to headline inflation, said analysts at BNP Paribas.

SLOVAKIA: The Slovak Debt and Liquidity Management Agency said Thursday that it won't conduct a government bond auction in August, with its decision based on responses from primary dealers and the fact that the country's financial needs are already met to almost 90%.

-Patryk Wasilewski in Warsaw contributed to this article.

Write to Leos Rousek at leos.rousek@wsj.com

Go to http://blogs.wsj.com/emergingeurope for the new WSJ and Dow Jones blog on Central and Eastern Europe, covering business, politics, society and more, written by our correspondents across the region.