Czech Republic Sees Slowdown in Inflation Rate in April 2023

Consumer prices in the Czech Republic continued to slow in April, with the annual inflation rate at 12.7%, down 2.3 percentage points from March. Inflation even fell every month by 0.2%. The Czech Statistical Office (CSU) released the data on Thursday. The April consumer price index was influenced by food prices, which significantly slowed down the overall growth rate. Compared to March, food prices dropped, marking their first monthly decline since October 2021.

The head of CSU’s consumer price statistics department, Pavla Sediva, noted that flour prices’ annual growth rate slowed to 6.3% in April, compared to 32.6% in March. Meanwhile, meat prices rose by 12.7% in April, compared to 22.7% in March. The prices of semi-skimmed long-life milk rose by 19.2% in April, compared to 45.2% in March. Egg prices were up 41.2% YoY, compared to 75.5% in March. Prices of oils and fats rose by 10.5% YoY, compared to 16.1% in March. Vegetable prices rose by 18.3% YoY, compared to 29.9% in March. Lastly, sugar prices were up by 60.9% YoY, compared to 97.6% in March.

The prices of electricity, natural gas, heat, and hot water also decelerated YoY in April. Electricity prices rose by 24.8%, compared to 29.6% in March, while natural gas prices rose by 53.1%, compared to 60% in March. Meanwhile, heat and hot water prices rose by 40.9% YoY in April, compared to 44.6% in March.

The slowdown in inflation is a relief to Czech consumers, who have been grappling with soaring prices of essential commodities for months. The central bank will likely view this development positively, as it has repeatedly expressed concerns over inflationary pressures. Overall, the latest data suggests that inflation in the Czech Republic may have peaked in Q1 2022.