The Czech Republic’s annual inflation rate fell to 2.8% in January, marking a 0.2 percentage point decrease from December, according to the latest data from the Czech Statistical Office (ČSÚ). While lower energy costs helped curb overall price growth, consumers continue to face higher prices for food and beverages.
Pavla Šedivá, head of the Consumer Price Statistics Department at ČSÚ, reported that food prices rose by nearly 5% compared to last January, while housing costs showed a more modest increase of 1.3%. Energy costs provided some relief, with electricity prices dropping by 4.7% and natural gas prices falling by 7.7% year-over-year.
The food sector saw significant price variations. Butter prices surged by 40.5%, while eggs became nearly 25% more expensive. Chocolate and chocolate products saw a sharp increase of almost 28%. However, sugar prices dropped by more than 20%, and vegetable prices showed a slight decrease of 0.7%.
In the services sector, accommodation costs rose by 8.7%, and dining out became 5.2% more expensive. Overall, goods prices increased by 1.7%, while services saw a more substantial rise of 4.7%.
According to Petr Dufek, chief economist at Creditas Bank, while the inflation trend is improving, the 4.7% increase in service prices remains a concern, particularly given the rising costs of housing impacting the consumer price index.