Year-on-year inflation in the Czech Republic accelerated to 2.5 percent in April, marking its highest level in half a year. The overall price growth is primarily driven by more expensive fuels due to tensions in the Middle East, while food prices continue to fall.

Body: According to the Czech Statistical Office (CZSO), consumer prices increased by 0.5 percent month-on-month. Analysts noted that although fuels have become more expensive, this has not yet manifested in other items of the consumer basket. Overall, goods rose by 1.1 percent year-on-year, and services increased by 4.8 percent.

Fuel and lubricant prices increased by almost a quarter compared to the same period last year. Liquors and spirits, wine, and tobacco products rose by nearly six percent, and beer by 2.7 percent. Rent increased by 6.3 percent, water and sewage by almost four percent, and heating and hot water also became more expensive. Conversely, electricity prices fell by 11.6 percent and natural gas by 5.6 percent. Owner-occupied housing costs rose by 5.5 percent, mainly due to the increased prices of new real estate, the CZSO stated. Catering services became four percent more expensive year-on-year, and accommodation services rose by 6.4 percent. Prices of recreation services increased by 6.1 percent.

Prices in the food and non-alcoholic beverages category continued to push the overall price level down, dropping by 1.3 percent. Potatoes cheapened by more than 30 percent, semi-skimmed long-life milk by almost 29 percent, butter by more than a quarter, and pork by 15.6 percent. The decline in prices of clothing (down by 2.1 percent) and footwear (down by 4.6 percent) also continued.

Statisticians also published data on foreign trade for March of this year. Compared to last March, export prices decreased by 1.8 percent and import prices by 2.0 percent. However, month-on-month, export prices rose by 1.6 percent and import prices by 2.5 percent.

"In March, export and import prices were influenced by the exchange rate of the koruna against the euro and the dollar, and by the growth of global oil prices," stated Vladimír Klimeš, Head of the CZSO Industrial and Foreign Trade Prices Statistics Department. He added that prices of coke and refined petroleum products grew significantly month-on-month—by 33 percent in exports and 44.4 percent in imports. Year-on-year, these prices also increased by tens of percent. Conversely, export prices of paper, chemicals, and food products decreased, as did import prices of clothing, textiles, and food.

Source: e15
Prepared by the team of foreign office CzechTrade South Korea (Seoul)