Czech inflation accelerated to 2.9% y/y in April

Czech inflation accelerated to 2.9% y/y in April
Annual inflation in Czechia rose by 0.7% in April against the figure for March / bne IntelliNews
By bne IntelliNews May 13, 2024

Consumer price indices in Czechia increased by 2.9% year on year and by 0.7% month on month as food, alcohol and tobacco prices spiked.

It is 0.9 percentage points up on the inflation growth in March when it stagnated m/m at the Czech National Bank (CNB) target level of 2%.

“April acceleration of year-on-year price growth almost to 3% came mainly from price growth of food, alcoholic beverages and fuels,” commented Pavla Sediva, head of the Consumer Price Statistics Unit at the Czech Statistical Office (CZSO).

In its comment, the CNB noted that food prices “is one of the most volatile items of the consumer basket,” and that despite the inflation beating the CNB’s spring forecast by 0.4 pp, it is “in the upper half of the tolerance band around the CNB’s 2% target.”  

Non-alcoholic beverages prices increased by 5.4% y/y, vegetables by 2.4% and chocolate by 9.2%. Prices of spirits increased by 10.4%, wine by 5.5%, beer by 6.5% and tobacco products by 7.1%. Price growth in the transport basket came from fuels and lubricants for personal transport equipment, which rose by 8.4%.  

Other items in the food and non-alcoholic beverages basket slowed down their decline, including flour (-19.1% compared to -27.8% in March), meat (-3.9% compared to -6%), semi-skimmed milk (-11.4% compared to 26.6%) and eggs (-15.5% compared to 27.7%).

Prices in housing, water, electricity, gas and other fuels had the greatest impact on y/y inflation growth, CZSO highlighted. Prices of actual rents increased by 7.2%, prices of materials and services for maintenance and repair of dwelling by 4.6%, water supply by 10.9%, sewage collection by 10.5%, electricity by 12% and heat and hot water by 2.8%. Natural gas prices dropped by 5.8%, as did prices of solid fuels by 4.8%.

In m/m terms, in the food and non-alcoholic beverages sector, prices of pork increased by 4.6%, non-alcoholic beverages by 2.3%, vegetables by 2.3%, chocolate by 10.8%, bread and cereals by 1%, poultry by 2.7%, smoked meat and sausages by 1.5%, cheese and curd by 1.6%. In alcoholic beverages and tobacco, wine went up by 5.4%, spirits by 3.8%, tobacco products by 1.2% and beer by 1.4%.