- Hans Weber
- December 1, 2023
Inflation in the Czech Republic Slows Down to 11.1% in May
Prague, Czech Republic – Inflation in the Czech Republic continued its deceleration, reaching 11.1% year-on-year in May, a decline of 1.6 percentage points compared to April. The Czech Statistical Office (CSU) released this data on Monday, shedding light on the country’s economic indicators.
According to Pavla Šedivá, Head of the Department of Consumer Price Statistics at CSU, the May data reveals that prices increased by approximately 11% compared to the previous year. However, the year-on-year growth has been steadily decreasing since February. Notably, transportation prices saw a decrease due to falling fuel prices, making it the only item in the consumer basket where prices fell compared to the previous year.
The slowdown in year-on-year price growth was primarily driven by the housing, food, and non-alcoholic beverages categories. In particular, natural gas prices slowed down to 47.6% (compared to 53.1% in April), and solid fuels decreased to 39.4% (from 47.6% in April). Key food items contributing to the deceleration were bread at 15.8% (down from 21.1% in April), meat at 8.7% (compared to 12.7% in April), long-term storage semi-skimmed milk at 5.4% (down from 19.2% in April), and eggs at 32.3% (compared to 41.2% in April). Butter prices also saw a nearly 20% year-on-year decline.
Rising rents (+6.8%), water (+16.3%), sewage (+30.3%), electricity (+24.8%), and heating and hot water (+41.3%) were the major contributors to year-on-year inflation. Additionally, food and non-alcoholic beverages played a role, with rice prices increasing by 23.2%, margarine and other vegetable fats by 25.8%, vegetables by 21.5% (potato prices up by 22.9%), and sugar by 58.7%.
In terms of month-on-month comparison, the costliest food items included potatoes (+6%), eggs (+5.5%), fruit (+4.5%), and smoked meat (+3%). Spirits also experienced an increase of nearly four percent. However, butter prices dropped by 4.2%, and semi-skimmed long-life milk became 1.9% more affordable.
Electricity prices saw a month-on-month increase of 0.6%, while rent, heating, and hot water costs each rose by 0.5%. Fuel and oil prices, on the other hand, decreased by 3.9%. Overall, the costs of goods and services both increased by 0.3%.
The latest inflation figures reflect a gradual slowdown in price growth, suggesting a more stable economic environment. As the Czech Republic continues to monitor and manage its inflation rate, policymakers will aim to strike a balance between maintaining price stability and fostering sustainable economic growth.
Article by Prague Forum