The annual inflation rate in the Czech Republic softened to 2 % in February 2024, a slight dip from 2.3 % in the preceding month, and marginally below market forecasts of 2.2 %. This figure represents the lowest reading since December 2018, largely attributed to a continued decline in prices of food and non-alcoholic beverages, marking the steepest fall since November 2009.

Diverse price movements across categories

A breakdown of the Consumer Price Index (CPI) reveals a mixed picture across various categories. While costs decreased for items like alcoholic beverages, clothing, health, and recreation, others experienced a rise, notably in transport and housing utilities. Monthly, the CPI edged up by 0.3 % in February, a deceleration from January's 1.5 % increase.

Insight into Czech Republic's Consumer Price Index composition

Housing and Utilities stand as the most significant category in the consumer price index, comprising 27 % of the total weight. Food and Non-Alcoholic Beverages follow closely, accounting for 18 %, with Transport at 10 %, and Alcoholic Beverages and Tobacco at 9 %. Other sectors, including Recreation and Culture, Health, and Education, contribute to the remaining share of the index, offering a comprehensive view of the country's inflation landscape.

Source: www.tradingeconomics.com