Inflation accelerates, analysts also warn about rising housing costs

Consumer prices rose by 1.9% year-on-year in March. The annual inflation rate accelerated from 1.4% in February. Fuel prices increased the most. This follows from data released by the Czech Statistical Office (CZSO), which today confirmed its preliminary estimate. Compared to the previous month, consumer prices rose by 0.6%.

In addition to rising fuel prices, the increase in the cost of both owner-occupied and rental housing is also seen as problematic.“Costs of owner-occupied housing increased by 5.4% year-on-year, mainly due to rising prices of new properties,” said Pavla Šedivá, head of the Consumer Price Statistics Department at the CZSO.

People also paid 6.1% more for rental housing, while prices for minor repairs and home maintenance rose by 3.6%.

In the coming months, analysts expect the rate of price growth to exceed two percent, with further developments largely influenced by the conflict in Iran.