Czech Inflation Accelerates In July

According to figures published by the Czech Statistical Office today, consumer prices in the Czech Republic accelerated slightly to 3.4 percent in July from 3.3 percent in June. In particular, alcoholic beverages and tobacco became more expensive. Compared to June, prices increased by 0.4 percent.

According to analysts, inflation surprises with higher growth, and its expected slowdown may be delayed until next year. The number is in line with the CNB forecast, they added.

According to statisticians, the year-on-year development was influenced by bilateral price movements in several sections of the consumer basket. “For example, in the section of alcoholic beverages and tobacco, the prices of tobacco products increased by almost 14 percent compared to last year. In the food and non-alcoholic beverages sector, the prices of potatoes fell by about 13 percent year-on-year,” the CZSO said.

Sausage prices increased by more than ten percent compared to last year. For example, a kilogram of pork belly previous year was about CZK 97, and it was about CZK 10 more expensive. Spekacky also rose by more than ten crowns to about 136 CZK. In July this year, people paid almost CZK 161 / kg for ham salami, about CZK 12 more than last year. On the other hand, chicken and turkey breast fillets became cheaper.

The price of eggs increased by about nine percent compared to last year. Some fruits also became significantly more expensive. The cost of oranges increased by more than CZK 12 to CZK 48 per kilogram, lemons rose by more than CZK 23 to CZK 71.50 and table apples by CZK 15 to CZK 43.12 per kilogram.

Rents were up 2.8 percent year-on-year in July, electricity was 7.6 percent higher, water and sewerage prices also rose, and the cost of natural gas rose slightly. People paid 5.6 percent more for catering services than last year.

On the other hand, prices in the transport section fell by less than one percent compared to last year. Prices for postal and telecommunications services also fell by almost four percent.

The month-on-month growth of inflation was mainly influenced by an increase in seasonal prices of package holidays by more than 23 percent.

Compared to June this year, some foods have become cheaper. For example, the price of potatoes fell by 28 percent to CZK 16.04 per kilogram, which was the least since November 2018. Vegetables, fruits, pork, or sugar were also cheaper.

Export prices rose by two percent year on year in June. The main reason was the weakening of the koruna against the euro and the dollar. Import prices fell by 1.5 percent year on year, mainly due to a decrease in mineral fuel prices by more than 40 percent. Month-on-month, export prices were lower by 1.8 percent, while import prices fell by 2.2 percent compared to May this year.