- Hans Weber
- December 1, 2023
Czech Republic Ranks 13th in Europe for Inflation Rate in May, According to Analysis
Prague, Czech Republic – Despite a decrease, the Czech Republic maintained its position as one of the European countries with high inflation rates. According to a recent analysis by investment platform Portu, the country ranked 13th out of 41 European nations in terms of inflation in May, improving by one position from April. The annual inflation rate in May decreased to 11.1% from 12.7% in April, as reported by the Czech Statistical Office on Monday.
Leading the list of European countries with the highest inflation rates is Hungary, with a rate of 21.5%. It is followed by Moldova at 16.3%, Ukraine at 15.3%, and Serbia at 15.1%. Slovakia and Poland, neighboring countries of the Czech Republic, have inflation rates of 13.8% and 13%, respectively. In contrast, Germany has a lower inflation rate of 6.1%, and Austria stands at 8.8%.
The countries with the lowest inflation rates in Europe are Switzerland and Liechtenstein, both at 2.2%, followed by Russia at 2.5%, Greece at 2.8%, and Denmark at 2.9%.
Despite the slight decrease, the inflation rate in the Czech Republic remains relatively high. In comparison, inflation in the eurozone decreased by 0.9 percentage points to 6.1% in May, reaching its lowest level since February 2022. Similarly, the United States experienced a tenth consecutive month of declining inflation in April, with a rate of 4.9%, the lowest value since April 2021.
Turkey continues to face significant inflation, although it has been gradually decreasing from around 80% in the second half of last year to 39.59% in May. However, there are concerns about the sustainability of this decline, as it is partly attributed to pre-election promises made by President Recep Tayyip Erdogan to provide unlimited amounts of natural gas to all households for one year.
In contrast, many Asian countries have lower inflation rates. China, for instance, experienced a slight increase in its inflation rate to 0.2% in May from 0.1% in April. This low inflation rate is largely attributed to the remnants of China’s strict zero-tolerance policy towards COVID-19, which resulted in temporary closures and suppressed consumer demand. Taiwan also reported a lower inflation rate, with a slight decrease to 2% in May from 2.35% in April.
As inflation rates continue to fluctuate globally, it is crucial for policymakers in the Czech Republic to monitor the situation closely and implement appropriate measures to ensure price stability and sustainable economic growth.
Article by Prague Forum