Czech Republic Inflation Falls to 2016-Lows

The annual inflation in the Czech Republic eased to 1.6% in January 2026 from 2.1% in the previous month, slightly below market expectations of 1.7%, preliminary estimates showed. This marked the lowest reading since November 2016, as costs in goods declined (-0.4% vs 0.5% in December), while deflation for energy deepened further (-7.9% vs -4.2%). Food and non-alcoholic beverages inflation also moderated (1.3% vs 1.7%), while it held steady for services (4.7%). Meanwhile, inflation for alcoholic beverages and tobacco persisted (4.7% vs 4.1%). On a monthly basis, consumer prices rose 0.9%, rebounding from a 0.3% decline in the prior month.

The annual inflation rate in the Czech Republic held steady at 2.1% in December 2025, unchanged from November, confirming preliminary estimates. Prices continued to increase for alcoholic beverages and tobacco (4.1% vs 4% in November), housing and utilities (1.9% vs 1.7%), furnishings, household equipment and maintenance (1.4% vs 1.0%), health (3.3% vs 2.9%), restaurants and hotels (4.7% vs 4.6%), and miscellaneous goods and services (3.5% vs 3.2%). Meanwhile, inflation eased for food and non-alcoholic beverages (1.7% vs 2.2%), communication (0.4% vs 0.5%), and recreation and culture (3.6% vs 3.7%), while cost in education remained steady at 4.1%. Transport costs also declined (-0.2% vs 0.4%), while deflation persisted for clothing and footwear at 2.1%. On a monthly basis, consumer prices fell by 0.3% in December, unchanged from the previous month.

The annual inflation rate in the Czech Republic stood at 2.1% in December 2025, unchanged from the previous month, according to preliminary estimates. This marked the lowest reading since April, matching market expectations of 2.1%. Price growth moderated for food, alcohol, and tobacco (2.5% vs 2.8% in November) and goods (0.4% vs 0.6%). Additionally, costs declined further for energy (-4.2% vs -3.8%). On the other hand, prices increased for services (4.8% vs 4.6%). On a monthly basis, consumer prices fell by 0.3% in December, the same pace as the preceding period.