The disputed Philips-curve (showing that inflation and the unemployment rate are inversely proportional) seems to describe accurately the trends in both crisis-hit Slovakia and the Czech Republic. Faltering growth in cooling domestic demand is a key factor, since it slows the inflation and accelerates the jobless rate in parallel. Since none of the unfavourable trends seems to stop, the crisis is unlikely to end soon, despite the fact that second quarter Czech GDP-data is slightly better than expected.