March sees year-on-year inflation jump of 12.7 percent

Inflation rose by 12.7 percent year-on-year in the Czech Republic in March, up from 11.1 percent the previous month. This was the biggest such increase since May 1998, when a 13 percent jump in inflation was recorded, according to data released by the Czech Statistics Office on Monday.  

Illustrative photo:  ČT24

Fuel prices were a major driver of inflation, with March prices being around 50 percent higher than those recorded in the same month in 2021. Natural gas and electricity prices were also up.

Analysts had expected this development, the Czech News Agency reported.

The head of the Czech Statistics Office’s consumer prices section, Pavla Šedivá, told the news wire that consumer prices had increased by 12.7 percent compared to in the third month of last year.

Ms. Šedivá said the fastest price growth had been recorded in fuel prices, which were half as expensive again as they were in March 2020. She said a common petrol type had been selling for CZK 44.50 a litre, while diesel cost CZK 47 a litre.

Illustrative photo: Jernej Furman,  Flickr,  CC BY 2.0

In the field of housing, electricity prices increased by 24.7 percent year-on-year last month. Natural gas prices went up by no less than 37.7 percent and products and services for routine maintenance and repairs were 16.4 percent more expensive. People had to pay 13.9 percent more for heat and hot water.

According to Czech Statistics Office officials, prices in the housing sector again had the largest impact on the year-on-year rise in the price level in March; in addition to cost of owner-occupied housing, rental prices rose by 4.4 percent, water charges by 5.3 percent, sewerage charges by 6.4 percent and fixed fuel prices by almost one-fifth.

Illustrative photo: Ondřej Tomšů,  Radio Prague International

This was followed by prices in transport, where there was an increase of almost 22 percent.

In the field of food and non-alcoholic beverages, prices of flour were higher by 30.3 percent year-on-year, semi-skimmed milk powder by 20.1 percent, butter by 31.9 percent and potatoes by 21.4 percent.

Compared to March last year, clothes were almost 20 percent more expensive and shoes were 15.4 percent dearer.