Inflation in the Czech Republic Reached 18 Percent in September

Year-on-year inflation in the Czech Republic reached 18 percent in September, according to data published Wednesday by the Czech Statistical Office (CSU).

While the previous month saw the first dip in inflation for more than a year, it grew by 0.8 percent in September, reaching the highest year-on-year rate since December 1993.

In year-on-year terms, rising food and energy prices remained the major causes of inflation. Flour prices, for example, jumped 64.1 percent from last year.

In its commentary on the inflation report, the Czech National Bank (CNB) noted that the published figure is below their forecast of 18.8 percent.

Still, the CNB predicts that inflation will peak at just above 20 percent in the coming months and slow down in the next year.

The bank also predicts that in the first half of 2024, inflation should decrease close to its 2 percent target.

Inflation in the euro area reached ten percent in September up from 9.1 percent in August, according to the preliminary data released in September by Eurostat.

As stated in the relevant announcement, looking at the main components of inflation in the euro area, energy is expected to have the highest annual growth rate at 40.8 percent compared to 38.6 percent in August.

This is followed by food, alcohol, and tobacco with an 11.8 increase compared to 10.6 percent in August, non-energy manufactured goods, which saw an increase of 5.6 percent compared to 5.1 percent in August, and services in which a 4.3 percent increase was recorded in comparison to the 3.8 increase seen in August.