Czechia recorded the third-lowest inflation rate in the European Union in August, even as price growth accelerated across much of Europe, driven in part by rising energy costs.

According to the latest Eurostat data, Czech annual inflation stood at 1.5 percent in August, based on the EU's harmonized measure, up slightly from 1.3 percent in July. Only Sweden, at 0.3 percent, and Estonia, at 1.3 percent, recorded lower inflation rates.

By comparison, annual inflation across the European Union increased from 3 percent in July to 3.2 percent in August, with prices rising in 20 of the EU's 27 member states compared with the previous month.

The highest inflation rates were recorded in Romania at 6.3 percent, Lithuania at 5.6 percent, and Cyprus at 5.2 percent.

Why Czech inflation figures differ

The 1.5 percent figure reported by Eurostat differs from the headline inflation rate reported domestically in Czechia because Eurostat uses the Harmonized Index of Consumer Prices (HICP), which is designed to make inflation rates comparable across EU member states.

The Czech Statistical Office reported last week that inflation under the national methodology increased from 1.7 percent in July to 1.9 percent in August.

Inflation also accelerated in the eurozone, reaching 3.2 percent in August, compared with 2.9 percent in July. Eurostat revised the figure slightly downward from its preliminary estimate of 3.3 percent.

Energy prices were a major contributor to inflation in the eurozone, while services continued to exert upward pressure on prices.

The latest Eurostat figures highlight an increasingly significant gap in inflation across the EU. While Czechia's harmonized inflation rate remains below 2 percent, several EU member states are experiencing price growth of more than 5 percent.

Sources:

Expats.cz, https://www.expats.cz/czech-news/article/czech-inflation-third-lowest-in-eu-for-august-as-prices-rise-across-europe

Eurostat, https://ec.europa.eu/eurostat/en/web/products-euro-indicators/w/2-17092026-ap