Real wages in Czechia see steepest drop in EU

Real wages in the Czech Republic have fallen significantly since 2019, mainly because the country has experienced one of the highest cumulative inflation rates among EU member states, according to an analysis by XTB. Czech wages increased by 27 % in nominal terms since the end of 2019, but are 10 % lower in real terms due to high inflation. The decline in purchasing power is the most pronounced among all EU countries.

Since the end of 2019, consumer prices in Czechia have risen by 41 percent, with only Poland and Hungary recording stronger growth at 42 percent and 52 percent respectively. However, nominal wage growth in both countries exceeded that in the Czech Republic. The second steepest drop was recorded in Italy, where real wages are five per cent lower than in 2019, by contrast, real wages in Bulgaria rose by 36 per cent since 2019.