Around 30% of Czech Households May Fall Into Poverty – Study

Around 30% of Czech households may fall into poverty next year as a result of the sharp increase in energy prices and rising housing costs.

Despite caps approved by the government, housing costs could account for up to 34% of their monthly income, according to an analysis by PAQ Research based on data from the Czech Statistics Office (CZSO) on household energy consumption.

Households with children, or the poorer half of them, are expected to be hit the hardest.

Calculations show that the number of families with children whose housing expenses will account for more than 30% of their income will increase.

Currently, this affects 23% of people, but after the New Year, the proportion could rise to 31%.

A quarter of families will be left with less than CZK 3,000 per person a month, or CZK 100 per day, after paying for food and housing.

November inflation rate at 16.2 percent

The inflation rate rose to 16.2 percent year-on-year in November, up from 15.1 percent in October, the Czech Statistics Office reported.

The inflation was driven by higher costs of housing,  food and non-alcoholic beverages, alcoholic beverages and tobacco.

Meanwhile, prices slowed down in the areas of transport, recreation and miscellaneous goods and services.

On a monthly basis, consumer prices increased by 1.2 percent, after a 1.4 percent decline in October.