According to the Czech Statistical Office (ČSÚ), inflation in November slowed to 7.3%, a decrease of 1.2 percentage points compared to October. In a month-on-month comparison, prices increased by only 0.1%.
As in the previous month, last year’s energy-saving tariff distorted inflation data in November. Statisticians pointed out that without including the effect of this government measure the last year into the consumer price index, the annual inflation rate would be “only” 4.7% today.
The year-on-year price growth was weakening in most sections of the consumer basket, most notably in food and housing. In the transport section, prices fell year-on-year, mainly due to lower fuel prices. Pavla Šedivá, head of the CSÚ’s consumer price statistics department, stated these findings.
Despite the slowdown in inflation compared to October, the prices of some commodities are still significantly higher than last year. For example, potatoes are more than a quarter more expensive than in November 2022. On the other hand, eggs are a quarter cheaper, and sugar prices are lower by 18.6%.
According to Petr Dufek, chief economist of Creditas Bank, the outlook for inflation next year is uncertain. This is because it is unclear how energy companies will reflect the higher regulated price component in their new price lists and what impact higher energy costs will have on companies. Dufek added that while inflation is likely to return to three percent at the beginning of 2024, how quickly it will aim for the two percent target will depend on the behavior of traders and customers.