Industrial producer prices dropped by 0.8% year-on-year in August, improving from July’s 1.2% decline, according to the Czech Statistical Office. Lower global oil prices and a stronger koruna, which makes imports cheaper, were the main drivers, analysts noted. The trend offers relief to manufacturers, though high energy costs, looming U.S. tariffs, and growing Chinese competition remain obstacles.

In contrast, agriculture recorded significant price growth, with producer prices up more than 11%. Plant production rose by 4.6%, led by fruit (+14%) and oilseeds (+10%). Animal production surged nearly 19%, driven by a 45% increase in egg prices and a 40% rise in cattle. Analysts attribute the ongoing rise to expensive fertilizers, breeding and cultivation costs, and higher labor expenses.

Construction prices also increased by 2.6% year-on-year, with building materials 1.1% higher than last August.

Source: CzechDaily

Prepared by the team of foreign offices CzechTrade Osaka and Tokyo