Inflation in the Czech Republic has accelerated, with the annual rate reaching 2.8% in October, up 0.2 percentage points from September.
On a monthly basis, prices increased by 0.3%, according to data released by the Czech Statistical Office (ČSÚ) on Monday. Analysts predict that inflation will continue to climb throughout the remainder of the year.
The largest contributor to the year-on-year inflation was the rise in housing costs. Rent prices saw a jump of more than 6%, electricity and water prices increased by about 10%, and sewerage fees surged by over 13%.
In addition, catering services (+6.9%) and accommodation services (+9%) also became more expensive, with holiday prices rising by 5%. “Alcohol and tobacco prices also went up, with the exception of wine, which became 1.6 percent cheaper. The main driver of inflation in the food sector was the price of butter, which jumped by 40.6 percent,” said Tomáš Volf, an analyst at Citfin. Prices for chocolate and chocolate products also saw a double-digit rise (+14.4%).
Butter prices increased by 3.5% from the previous month, while other food items experienced mixed trends. Eggs became significantly more expensive (+15.5%), but the price of long-life milk dropped by 15%, and sugar fell by 11%.
Overall, the price of goods rose by 1.3%, while services prices climbed by 5.3%.
