In the Czech Republic, inflation increased to 12.7 percent yearly in March, up from 11.1 percent in February. It grew by 1.7 percent month over month. This is the fastest inflation growth since May 1998.
“The most significant acceleration in price growth was recorded in fuel, which was half as expensive in March as a year ago. For example, Natural 95 was sold at petrol stations for an average of CZK 44.50 per liter and diesel for CZK 47 per liter, “said Pavla Šedivá, head of the consumer price statistics department at the Czech Statistical Office (CSO).
In March, fuel and oil prices increased by 50.6 percent yearly. People paid 24.7 percent more for electricity in March than the previous year and 37.7 percent more for natural gas. Heat and hot water were 13.9 percent more expensive.
Housing prices had the most significant impact on March inflation. In addition to the cost of owning a home (up 16.3 percent), apartment rents rose 4.4 percent, water rates 5.3 percent, sewerage 6.4 percent, and solid fuels 19.9 percent. In transport, prices rose by 21.6 percent year-on-year, while clothing prices rose by 19.9 percent and footwear by 15.4 percent.
“In the food and non-alcoholic beverages section, flour prices were higher by 30.3 percent, semi-skimmed long-life milk by 20.1 percent, butter by 31.9 percent, and potatoes by 21.4 percent year-on-year,” the CSO added.
According to analysts, rents will also increase in price
According to BHS chief economist Štěpán Křeček, due to the ongoing war in Ukraine, rents can be expected to become more expensive in the coming months, in addition to rising commodity prices.
“In the future, we can expect rent prices to rise because refugees from Ukraine will look for rental housing after finding work so that they no longer have to live in makeshift gyms and other inadequate places. This may be accompanied by increased demand for furniture or home maintenance and repair products, “he said.
According to Jana Mücková, an economist at the LOGeco investment group, rising inflation will continue in the coming months, with a moderation expected in the second half of this year. She added that ” the current trend could break “around the middle of the year, and prices could moderate their growth.”
A 1.7% increase month on month
Consumer prices increased 1.7 percent month on month in March. Natural gas prices rose 7.4 percent in March, while electricity prices rose 1.7 percent. Among foodstuffs, prices rose month-on-month mainly for butter (up 4.1 percent), oils and fats (up 2.8 percent), fruit (up 2.1 percent), bakery products and cereals (up 1 percent), and meat (up 0.8 percent).
Food services were 2.2 percent more expensive month-on-month in March, while accommodation services were 3.4 percent more expensive. “Prices of goods rose by 2.5 percent in aggregate and services prices by 0.4 percent,” the CSO added.