Producer prices in the Czech Republic declined by 1.3% year-on-year in November 2025, according to the latest data. Although the decrease was slightly smaller than market expectations of a 1.6% drop, it represented a deeper decline than the 1.2% contraction recorded in October.

This outcome marked the tenth consecutive month of producer price deflation and the sharpest decline since April 2025. The downward trend was largely driven by falling prices in the energy sector, where prices for electricity, gas, steam, and air conditioning supply dropped by 3.2% year-on-year, compared to a 2.6% decrease in the previous month.

Deflationary pressures also persisted in the manufacturing sector, with producer prices falling by 0.8%, slightly more than in October. The most significant declines were observed in chemicals and chemical products (-8.4%) and in motor vehicles, trailers and semi-trailers (-2.5%), reflecting weaker cost dynamics in key industrial segments. Prices in mining and quarrying remained unchanged, continuing to show deflation of 4.1%.

By contrast, producer prices for water supply, sewerage, waste management and remediation services remained stable, with inflation holding at 4.1%, indicating ongoing cost pressures in selected utility-related services.

On a month-on-month basis, producer prices rose by 0.3% in November, rebounding from a slight 0.1% decline recorded in October. This suggests short-term price volatility despite the broader deflationary trend observed on an annual basis.

Overall, the data point to easing input cost pressures for Czech producers, particularly in energy-intensive and manufacturing industries, which may have implications for industrial competitiveness and downstream pricing in the coming months..

Source: tradingeconomics.com

Prepared by team CzechTrade Israel