Consumer prices in the Czech Republic are rising, with inflation reaching 2.8% year-on-year in October, up 0.2 percentage points from September. The Czech Statistical Office (ČSÚ) released these figures on Monday, revealing a month-on-month increase of 0.3%. Analysts predict that inflation will continue to climb for the year.
Housing costs have been the primary driver of inflation, with rent prices increasing by over 6%, electricity by about 10%, and water and sewage rates by more than 13%. The hospitality sector has also seen significant price hikes, with food service prices up 6.9% and accommodation costs rising by 9%. Holiday prices have increased by a flat 5%.
In the food sector, butter prices have skyrocketed, jumping by a staggering 40.6% year-on-year. Tomáš Volf, an analyst at Citfin, noted that alcohol and tobacco prices have also increased, except wine, which saw a 1.6% decrease. Chocolate and chocolate products have experienced double-digit growth, rising by 14.4%.
Conversely, fuel prices have been a moderating factor in the overall inflation rate. For the third consecutive month, fuel prices have declined by more than 11%, this time. Pavla Šedivá, head of the Consumer Price Statistics Department at ČSÚ, reported that in October, diesel was selling at an average of 34.20 CZK/l and Natural 95 gasoline at about 35.60 CZK/l at gas stations.
Looking ahead, Petr Dufek, chief economist at Banka Creditas, warns that inflation will likely exceed 3% by the end of the year. He emphasizes that while pressure on goods prices has moderated due to weaker demand, service prices continue to rise rapidly. Dufek cautions against underestimating inflation, particularly in the service sector, as there are no signs of the current inflationary wave subsiding or hope for a quick turnaround.