Czech Inflation Eases to 2.3%, Lowest in 34 Months

The Czech Republic’s consumer price inflation eased more-than-expected in January to the lowest level in nearly three years, largely due to a sharp slowdown in utility costs along with a continued fall in food costs, data from the Czech Statistical Office shows.

Consumer prices climbed 2.3 percent year-over-year in January, much slower than the 6.9 percent rise in December. Meanwhile, economists had expected inflation to slow to 2.9 percent.

Further, this was the weakest inflation since March 2021, the agency said.

The annual price growth in utilities eased markedly to 3.1 percent in January from 16.8 percent in December.

The decline in prices of food and non-alcoholic beverages deepened to 3.9 percent from 0.3 percent.

Meanwhile, transport charges rebounded 0.4 percent after a 0.2 percent drop seen in December. On a monthly basis, consumer prices rose 1.5 percent in January, versus an expected increase of 2.0 percent.

The monthly upturn was mainly attributed to higher utility costs, especially electricity charges.