Czech Republic Inflation at 4-Month Low

The annual inflation rate in the Czech Republic eased to 1.5% in June 2026 from 2.1% in the previous month, coming in slightly below market expectations of 1.9%, according to preliminary estimates. This marked the lowest reading since February, as prices declined further for food and soft drinks (-3.4% vs -1.9% in May), while it fell for energy prices (-1.0% vs 1.8%) and goods (-0.4% vs 0.6%). Meanwhile, services inflation eased (4.5% vs 4.7%), while costs for alcoholic beverages and tobacco rose at a faster pace (4.3% vs 3.7%). On a monthly basis, consumer prices fell 0.3% in June, reversing a 0.1% increase in May and coming in below market expectations of no change.

The annual inflation rate in the Czech Republic increased to 2.1% year-on-year in May 2026, slowing from 2.5% in the previous month, confirming preliminary estimates. Price growth moderated across several categories, including alcoholic beverages and tobacco (3.7% vs 5.2% in April), recreation, sports and culture (3.0% vs 3.4%), health (2.8% vs 4.0%), information and communication (2.5% vs 3.4%), furnishings, household equipment and routine maintenance (1.1% vs 1.4%), and personal care, social protection, and miscellaneous goods and services (3.3% vs 3.5%). Meanwhile, deflation persisted for food and non-alcoholic beverages (-1.9% vs -1.3%) and clothing and footwear (-2.5% vs -2.4%). Conversely, inflation increased for housing and utilities (1.3% vs 1.2%), transport (9.4% vs 8.7%), education (4.0% vs 3.9%), and restaurants and hotels (4.4% vs 4.3%). On a monthly basis, consumer prices eased 0.1% in May from a 0.5% increase in April and marking the softest monthly gain since February.

The annual inflation rate in the Czech Republic eased to 2.1% year-on-year in May 2026 from 2.5% in the previous month and came in slightly below market expectations of 2.3%, according to preliminary estimates. The slowdown was mainly due to softer price increases in alcoholic beverages and tobacco (3.7% vs 5.2% in April), goods (0.6% vs 1.1%), and services (4.7% vs 4.8%). At the same time, costs for food and soft drinks continued to decline (-1.9% vs -1.3%).In contrast, energy prices increased further (1.8% vs. 1.5%). On a monthly basis, consumer prices rose 0.1% in May 2026, slowing from a 0.5% increase in the previous month.