Consumer prices in the Czech Republic showed a modest monthly increase of 0.2 percent in February, primarily driven by rising costs in recreation and cultural activities, according to the Czech Statistical Office. The year-on-year inflation rate dropped slightly to 2.7 percent, marking a 0.1 percentage point decrease from January.
The latest figures reveal a complex economic landscape where certain food items have seen dramatic price hikes. Butter prices have surged by a striking 41.6 percent, while chocolate products have increased by 30.5 percent. Basic staples haven’t been spared either, with long-life milk up by 12.3 percent and eggs rising by 18.6 percent.
However, it’s not all bad news for consumers. The clothing sector has been offering some relief, with prices declining for the fifth consecutive month. Energy costs have also decreased, with electricity prices down 4.8 percent and natural gas dropping by 7.9 percent.
The service sector continues to show significant price pressures, with restaurants raising prices by 4.9 percent and accommodation services up by 8.7 percent. Housing-related costs have also increased, with rental prices climbing 6.7 percent compared to last year.
According to PwC analyst Dominik Kohut, the service sector remains a key concern for future inflation trends. The uncertainty surrounding U.S. President Donald Trump’s recent policy decisions could potentially impact the Czech National Bank’s approach to interest rates, with the possibility of maintaining the current rate at 3.75 percent.