November inflation rise biggest since 2008

Consumer prices in the Czech Republic continue to grow at an unusually high rate. The latest data for November, released by the Czech Statistical Office on Friday, show inflation grew by 6 percent in annual terms. Although only a 0.2 percentage point rise on the previous month, it is the biggest year-on-year rise since October 2008.

According to the statisticians, the November increase in prices stemmed most from the increased housing and transport costs, but also for food and non-alcoholic beverages.

“Prices of cars rose by 7.4 per cent and fuel and oil by 32.8 per cent. Natural 95 petrol, for example, was sold at petrol stations in November for an average of CZK 37 per litre, which is the highest figure in the past nine years,” says Pavla Šedivá, head of the the Czech Statistical Office consumer price statistics department.

Year-on-year price growth accelerated for the fifth month in a row in November. Prices of goods in aggregate rose by 5 percent and prices of services by 7.5 percent in annual terms.

The price of tobacco products rose by more than 12 percent, as did the prices of clothing and footwear. Among foodstuffs, the price of butter increased the most, by 26.8 percent. Consumers will also pay more for potatoes (5.2 percent). To the contrary, prices of fruit have dropped by 1.4 percent.

As regards housing, the price of apartment rent increased by 3.7 percent in November, while products and services for routine maintenance and repairs of the apartment increased by almost ten per cent. The costs of water and sewerage services increased by 5.5 percent and the price of solid fuels by 6.5 percent.

Energy, on the other hand, was slightly cheaper in November compared to October. People paid 16.2 percent less for electricity and 11.5 percent less for natural gas. The decrease in prices is due to the VAT waiver on electricity and natural gas prices.