- Hans Weber
- December 1, 2023
Czech Republic Records Significant Drop in Inflation in September
Inflation in the Czech Republic saw a significant decline in September, marking its eighth consecutive month of slowing year-on-year growth. Consumer prices experienced a year-on-year growth rate of 6.9 percent, a decrease of 1.6 percentage points compared to August. This reduction was primarily driven by lower prices in food and energy categories. On a month-on-month basis, prices dropped by 0.7 percent. The data was released by the Czech Statistical Office (ČSÚ).
The year-on-year growth of prices decelerated for various food items. Egg prices increased by 7.5 percent, while fruit prices grew by 7.3 percent. Vegetable prices, although still high, increased at a slower rate of 20.4 percent in September compared to the 24.5 percent growth recorded in August. On a year-on-year basis, semi-skimmed long-life milk (-21.1%) and oils and fats (-13%) became more affordable in September.
This trend represents the eighth consecutive month of slowing inflation and brings the year-on-year growth of consumer prices below the seven percent threshold, marking the lowest value since December 2021, as noted by Pavla Šedivá, the head of the Consumer Price Statistics Department at ČSÚ.
The decline in inflation is attributed to lower prices in key categories like food and energy. It reflects efforts by both consumers and businesses to adapt to economic challenges and manage costs. However, analysts and policymakers will continue to monitor the situation closely, as inflation remains a significant concern for the Czech economy and the global financial landscape. While the recent slowdown is a positive development, it is essential to ensure that it can be sustained and does not lead to deflation or other economic risks in the future.
Article by Prague Forum