Czech real wages expected to return to pre-pandemic levels in 2026

Real wages in Czechia should recover to pre-pandemic levels next year, according to an analysis by investment platform Portu. The Czech Banking Association predicts a return to 2019 wage levels in 2026. After a significant decline between 2021 and 2023 due to high inflation, real wages have been slowly rising since early 2024. Growth is stronger in the public sector, partly due to pre-election wage increases. Analysts warn that rapid wage growth, outpacing productivity, poses a risk to the Czech National Bank’s inflation targets, potentially keeping interest rates unchanged this year.