The Czech Republic’s year-on-year inflation rate climbed to 2.4% in May, marking a 0.6 percentage point increase from April, according to the latest data from the Czech Statistical Office (CSU). Monthly consumer prices saw a 0.5% uptick, with food costs emerging as the primary driver while fuel prices helped keep overall inflation in check.
In a notable trend, fuel prices have been declining for ten consecutive months, with May recording a 13.5% year-on-year decrease. Diesel prices reached their lowest point since June 2023, averaging 32.70 CZK per liter, while Natural 95 gasoline hit its lowest mark since September 2021 at 33.90 CZK per liter.
The food and beverage sector showed significant price increases, rising by 5.4% year-on-year. Eggs led the surge with a striking 44.3% increase, followed by chocolate products at 23.4% and fruits at 15%. However, some staples saw welcome decreases, with sugar prices dropping by over 24% and flour becoming about 7% cheaper.
Housing costs continue to burden Czech households, with rental prices increasing by 5.7% year-on-year. Utility costs have also risen, with water supply up 4.2%, sewerage 3.7%, and heating and hot water up 4%. The silver lining comes from electricity and gas prices, which decreased by 4.6% and 8.4% respectively.
Prague faces particularly high inflation at 3.6%, driven largely by escalating housing costs. The capital’s property prices alone contribute 0.7 percentage points to its inflation rate, highlighting the growing affordability challenge in the city.