Inflation levels in Czechia at their highest since 2008
Inflation in the Czech Republic rose by 4.1 percent year-on-year in August, the most significant increase since November 2008, according to the Czech Statistics Agency. The rise in prices is being felt both in the cost of commodities and services, but the most significant price growth is visible in the cost of property.
When year-on-year inflation reached 3.4 percent in July, most analysts expected the rise in prices to stagnate. However, a month later, this trend has grown further exceeding the previous month by 0.7 percent.
According to Pavla Šedivá from the Czech Statistics Agency’s Consumer Prices Statistics Unit, the prices of commodities rose by 3.6 percent in August when compared to the same month last year. In the services sector, prices rose by nearly 5 percent.
However, it was the housing sector and its associated costs which had the largest influence on August’s inflation rise, according to statisticians. Rent prices rose by 2.5 percent, while water and sewer rates grew by 5.5 percent. Electricity and gas prices fell by 3.4 percent and 4.7 percent respectively. However, products and services for basic domestic upkeep rose in price by 7 percent. Meanwhile, the price of gas in transportation rose by nearly 5 percent year-on-year.
Alcohol, tobacco and foodstuffs also saw a rise in price in August. The cost of beer grew by 6.3 percent and the cost of tobacco product by 9.9 percent. Fats, oils, eggs and vegetables became more expensive, but the cost of fruit went down. A similar growth in prices was also identified in the cost of clothing.
July data relating to the cost of importing and exporting to and from the Czech Republic, which was published by statisticians on Friday, also shows a rise in prices. The former grew by 2.4 percent, while the latter by 3.1 percent.
Vladimír Klimeš from the Czech Statistics Agency’s Industrial and International Trade Prices Statistics Unit says that July’s year-on-year appreciation of the Czech crown to the dollar and the euro slowed down the rise in year-on-year prices.
Just as in previous months, statisticians registered a significant year-on-year rise in the cost of mineral fuels and other resources, such as iron, steel, wood and electricity.
According to the President at the Confederation of Commerce and Tourism, Tomáš Prouza, prices will likely continue rising for the next two years.