Consumer Prices in the Czech Republic Fall Slightly in December Compared to the Previous Month

In December 2024, consumer prices in the Czech Republic saw a slight decline of 0.3% compared to the previous month, primarily driven by lower prices in food, non-alcoholic beverages, and certain other sectors. On a year-on-year basis, inflation rose by 3.0%, marking a 0.2 percentage point increase from November.

Consumer prices in the Czech Republic fell by 0.3% in December compared to the previous month. This development was mainly influenced by lower prices in the food and non-alcoholic beverage sectors, as well as alcoholic beverages and tobacco products. However, in a year-on-year comparison, consumer prices rose by 3.0% in December, which is 0.2 percentage points higher than in November, according to the latest data from the Czech Statistical Office.

Compared to the previous month, consumer prices fell by 0.3% in December. In the food and non-alcoholic beverage sector, prices dropped by 2.8% for fruit, 1.8% for vegetables, 2.2% for poultry, and 1.9% for pork. In contrast, potato prices rose by 10.9%, while butter prices increased by 5.1%. The price trend for alcoholic beverages and tobacco products was influenced by lower prices for wine (-5.5%), spirits (-2.5%), and beer (-1.2%). In the residential sector, prices for natural gas fell by 2.4%, and in the “Other goods and services” category, prices for personal care products and services dropped by 1.1%.

Overall, prices for goods fell by 0.5%, while prices for services remained unchanged from the previous month.

On an annual basis, consumer prices rose by 3.0% in December, which is 0.2 percentage points higher than in November. The year-on-year price increase was mainly seen in food and non-alcoholic beverages as well as the transport sector.

The housing sector had the greatest impact on the year-on-year price increase in December: residential rent prices rose by 6.2%, prices for goods and services related to the ongoing maintenance of homes increased by 4.1%, water prices rose by 10.9%, wastewater charges went up by 13.4%, electricity prices increased by 8.0%, and heating and hot water prices rose by 8.5%. Natural gas prices fell by 5.5%.

The cost of owner-occupied housing (rent) rose by 1.7% year-on-year (1.5% in November), mainly due to the increase in prices for new homes. The overall consumer price index, excluding the cost of owner-occupied housing, was 103.1%.

Prices for goods rose by 1.7% overall, while prices for services increased by 5.0%.

According to preliminary calculations by Eurostat, the Harmonised Index of Consumer Prices (HICP) in the Czech Republic fell by 0.3% in December compared to the previous month and rose by 3.3% year-on-year (3.1% in November). Flash estimates show that the annual change in the HICP for December 2024 was 2.4% in the eurozone (2.2% in November), 2.8% in Germany, and 3.1% in Slovakia. The highest rate in December was in Croatia (4.5%), and the lowest was in Ireland (1.0%). According to provisional data from Eurostat, the annual change in the HICP for the EU-27 was 2.5% in November, 0.2 percentage points higher than in October. In November, it was highest in Romania (5.4%) and lowest in Ireland (0.5%).