Consumers in the Czech Republic have been affected by growing prices recently

Published: 03.03.2022 Related countries:  United Kingdom United Kingdom

In January, the Czech economy has experienced inflation of 9,9 % y/y and 6,6 % m/m respectively.

The price soar is registered to be the highest since July 1998. In spite of the fact that inflation has not exceeded two-digit numbers, it has significantly impacted the economy. The prices of a wide range of goods have been rising steadily in recent months. The main causes for the rise in question are housing expenses, such as rent and utilities. Moreover, many services have contributed palpably to the price ascend as well.

Regarding the strong demand, Czech companies have been taking advantage and increasing their profit margin, in an attempt to offset their pandemic losses. According to economic pundits, inflation is to exceed the ten percent threshold in the following months. Accordingly, the Central bank is expected to raise the interest rates to 5 %, to halt the steep price increase.