Home News Inflation is the lowest since December 2018. Year-on-year price growth moderated to two percent in February

Inflation is the lowest since December 2018. Year-on-year price growth moderated to two percent in February

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Inflation is the lowest since December 2018. Year-on-year price growth moderated to two percent in February

Myear-on-year growth in consumer prices in the Czech Republic slowed to two percent in February from January’s 2.3 percent. Year-on-year inflation has moderated with one exception since last February, when it reached 16.7 percent. It has now reached the two percent target of the Czech National Bank (ČNB), the last time it was at two percent was at the end of 2018. The data was published on Monday Czech Statistical Office (CZSO). Compared to January, consumer prices rose by 0.3 percent.

Compared to last February, people had to pay more especially for housing, rent prices rose by almost seven percent, water and sewerage became more expensive by more than a tenth, and electricity by roughly 13 percent. On the other hand, natural gas prices fell by a percentage year-on-year. Catering and accommodation services were also more expensive in February this year, where prices rose by almost nine percent and ten percent year-on-year, respectively. In recreation and culture, the prices of recreational and cultural services and holidays with complex services increased, and the prices of alcohol and tobacco also increased.

“Prices in the food and non-alcoholic beverages section mainly contributed to the year-on-year decrease in the overall price level in February,” the statisticians said. Eggs became cheaper by almost 31 percent, flour and semi-skimmed long-lasting milk by 23 percent, sugar by 21 percent and poultry meat by roughly 16 percent. Overall, according to the CZSO, the prices of goods rose by 0.2 percent and the prices of services by 5.2 percent.

In particular, fuel prices rose month-on-month in February. “Fuel prices had a significant impact on the development of consumer prices in February. They returned to growth after several months of decline. In February, diesel was sold at gas stations for around 38.10 CZK/l on average, and Natural 95 gasoline for almost 37.80 CZK/l,” said Pavla Šedivá, Head of the Consumer Price Statistics Department of the CZSO. Furthermore, compared to January of this year, the price of holidays with comprehensive services increased by six percent. Among foodstuffs, for example, potato prices increased by 11 percent. On the contrary, wine and spirits, poultry, butter and semi-skimmed milk became cheaper. The prices of goods as a whole remained at the level of January, and the prices of services increased by 0.7 percent.

According to forecasts of the central bank, year-on-year inflation should be close to the two percent target throughout the year. For the whole year, the CNB expects an average inflation of 2.6 percent.

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