Czech Republic Inflation at 6-Month High

The annual inflation rate in the Czech Republic rose to 2.5% year-on-year in April 2026 from 1.9% in the previous month, in line with market expectations, according to preliminary estimates. This marked the highest level since October 2025, driven by a sharp increase in alcoholic beverages and tobacco (5.2% vs 3.3% in March). Prices also rebounded for energy (1.5% vs -1.7%), while goods inflation accelerated (1.1% vs 0.1%) and services edged up (4.8% vs 4.7%). In contrast, deflation in food and soft drinks persisted (-1.3% vs -1.1%). On a monthly basis, consumer prices rose 0.5% in April, slightly above market expectations of 0.4% and easing from 0.6% in the previous month.

The annual inflation rate in the Czech Republic rose to 1.9% in March 2026 from 1.4% in February, confirming preliminary estimates and marking a three-month high. The main upward pressure came from higher transport costs (5.5% vs 3.3% in February), where fuel and lubricants for personal transport equipment swung sharply from an 8.4% decline in February to a 13.1% increase in March, making it the largest contributor to annual inflation. Inflation also picked up for housing and utilities (1.0% vs 0.8%), furnishings, household equipment and routine household maintenance (1.7% vs 1.1%), information and communication (2.9% vs 2.4%), and recreation, sports and culture (2.5% vs 1.7%). On the other hand, prices declined for food and non-alcoholic beverages (-1.1% vs 0.4%) and clothing and footwear (-2.6% vs -2.3%). On a monthly basis, consumer prices increased by 0.6% in March, reversing a 0.1% fall in February, driven mainly by higher transport and fuel costs.

The annual inflation rate in the Czech Republic rose to 1.9% year-on-year in March 2026, up from 1.4% in the previous month and slightly below market expectations of 2%, according to preliminary estimates. This marked the highest level since December 2025, driven by higher prices for services (4.7% vs 4.5% in February) and a rebound in goods prices (0.1% vs -0.7%). At the same time, the decline in energy prices eased (-1.7% vs -7.8%). Meanwhile, prices for food and non-alcoholic beverages fell (-1.1% vs 0.4%), while inflation in alcoholic beverages and tobacco slowed (3.3% vs 4%). On a monthly basis, consumer prices rose 0.6% in March, recovering from a 0.1% decline in February