William Malcolm

Czech Inflation Hits 5.7%

Year-on-year inflation rose sharply to an average of 5.7 percent in October from 4.9 percent in September. This follows from the estimates of analysts contacted by ČTK. According to economists, housing-related items continue to make the largest contribution to price growth. The growth of fuel prices is also noticeable. Compared to the previous month, economists estimate consumer price growth at about one percent. Data on October inflation will be published by the Czech Statistical Office on Wednesday, November 10.

“The focus of month-on-month price growth in September was housing, water, energy and fuels. In October, transport continued to rise in price, both due to higher fuel prices and more expensive cars. In particular, the costs associated with housing, including energy and the transport section. While electricity prices have been declining year-on-year so far this year, electricity and gas prices have already started to make a positive contribution to year-on-year inflation in October, “said Miroslav Novák, an analyst at Akcenta.

According to UniCredit Bank analyst Patrik Rožumberský, October was the fourth month in a row when year-on-year inflation showed a relatively dramatic jump. “Price growth is likely to accelerate again across the consumer basket, or in the vast majority of the 12 main price groups. According to him, another item with a significant impact on inflation was fuels, which in October probably rose by more than a quarter year-on-year.

“The growth rate of consumer prices accelerated again last month, as the main reason was the increase in housing costs, including the incipient increase in energy prices,” said Michal Brožka, an economist at Komerční banka. According to him, inflation will probably rise above six percent at the beginning of next year.