Year-on-year inflation in the Czech Republic accelerated to 17.5 percent in January

Year-on-year inflation in the Czech Republic accelerated to 17.5 percent in January

Year-on-year inflation in the Czech Republic accelerated to 17.5 percent in January

Illustration photo – Czech Statistical Office. Illustrative image.

Prague – Consumer prices in the Czech Republic rose by 17.5 percent year-on-year in January. The pace of inflation accelerated, in December prices were 15.8 percent higher year-on-year. Due to the end of the savings tariff for households, energy prices in particular had an impact, heat, water and sewage, and food also became more expensive. Compared to December, prices for consumers were six percent higher in January. This follows from data published today on the website by the Czech Statistical Office (ČSÚ).

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“The prices of electricity rose year-on-year by 36.4 percent, natural gas by 87 percent, water by 16.3 percent, sewage by 30.3 percent, and heat and hot water by 44.7 percent,” said Pavla, Head of the Consumer Price Statistics Department of the CZSO Gray. The prices of goods rose by 20.8 percent year-on-year in January, and by 12.2 percent for services.

According to the estimates of analysts and the Czech National Bank (ČNB), inflation was at its peak in January and will decrease in the following months . In the second half of the year, it should fall below ten percent. Annual inflation this year, according to estimates by the CNB and the Czech Banking Association (ČBA), will reach 10.8 percent, the Ministry of Finance estimates it at 10.4 percent. Last year, according to the CZSO, the average rate of inflation was 15.1 percent.

In a year-on-year comparison, electricity prices went from a decrease in December to an increase in January, while the growth in the price of water, sewage, heat and hot water accelerated. On the contrary, the increase in the price of natural gas moderated against December. In January, rent prices rose by more than six percent year-on-year, products and services for routine apartment maintenance by 18.6 percent, and solid fuels by more than 58 percent.

Compared to last January, the price of food and non-alcoholic beverages rose by almost a quarter. The prices of eggs increased by 85 percent, sugar by 84.7 percent, flour by 44.2 percent, semi-skimmed milk by 39.5 percent, pork by 36.8 percent, and poultry by 32.4 percent. Clothing and footwear went up in price by 16.3 percent. People paid 23.8 percent more year-on-year for catering services, and almost a fifth more for accommodation. Holidays with comprehensive services became more expensive by more than 19 percent.

In a month-on-month comparison, the prices of goods rose by 8.7 percent and services by 1.9 percent. “The significant increase in prices in the housing section was largely influenced by the end of the cost-saving tariff, when the price of electricity rose by 139.8 percent compared to December,” said the CZSO. Compared to December, heat and hot water rose in price by 23.5 percent, sewage by 30.3 percent, water by 16.3 percent and natural gas by 2.2 percent.

Prices of food and non-alcoholic beverages in January month-on-month increased by 3.9 percent. Non-alcoholic beverages, fruit, vegetables, eggs and pork were the most expensive. Butter and semi-fat long-life milk became cheaper. The prices of spirits, beer and wine rose by around nine percent compared to December. Fuel and car prices went down slightly.