Czech Inflation Eases to 2.0%, Lowest in Over 5 Years

The Czech Republic’s consumer price inflation eased more-than-expected in February to the lowest level in more than five years, largely due to a decline in food costs, data from the Czech Statistical Office showed on Monday.

Consumer prices climbed 2.0 percent year-over-year in February, slower than the 2.3 percent rise in January. Economists had expected inflation to moderate slightly to 2.2 percent.

Further, this was the weakest inflation since December 2018, when prices had risen by the same 2.0 percent.

Prices for food and non-alcoholic beverages dropped 4.8 percent annually in February. Clothing and footwear charges were 5.8 percent more expensive in February, slightly below the 5.9 percent surge in January.

Meanwhile, transport charges rose at a faster pace of 1.1 percent versus a 0.4 percent increase a month ago.

On a monthly basis, consumer prices moved up 0.3 percent in February, versus an expected increase of 0.4 percent.

Year-on-year inflation has been gradually decreasing over the last year, with the exception of October when it rose again slightly. Last February, inflation was at 16.7 percent.