Inflation: Price Rises See Record Jump in September

Price of Living in the Czech Republic

According to data from statisticians, prices rose by 4.9 percent year on year in September, surprising economists.

They did not anticipate such inflation until the end of the year, and the increase is impacting nearly every facet of life: “Year-on-year price growth was recorded in most of the monitored items,” said Pavla Šedivá from the Czech Statistical Office. Here is a run-down of what items are more costly these days. 

Fuel and car

The average price of petrol rose to 35.11 CZK per liter, while the price of diesel reached 33.56 CZK. The last time it was more expensive was in November 2018.

Trinity Bank chief economist Lukáš Kovanda now expects that the price of diesel will rise with high demand in the coming winter. Heating oil is used more frequently during this season, mainly in industry sectors. 

“In winter, an increase in gasoline prices in the Czech Republic of up to 40 crowns per liter cannot be ruled out,” Kovanda repeated.

Simultaneously, fuel is already 20 percent more expensive than the year before. Car prices are rising by six percent compared to last year. There are not enough new or used ones on the market because manufacturers are lacking certain materials. 

Housing 

The cost of owning a house is constantly rising. This trend reflects the rise in electricity and gas prices which is caused by their sharp rise in prices on international markets, as well as products for the maintenance and repair of the apartment.  

Compared to the previous year, there was also a significant increase in the prices of water and sewage of 5.5 percent in both cases. Experts anticipate that people will have to pay extra at the end of the year. “Headline inflation will be driven even more than the costs associated with housing, including more expensive energy,” says Miroslav Novák, an analyst at Akcenta.

While the price of gas might fall in the coming years after the newly commissioned Nord Stream 2 gas pipeline, experts are skeptical about electricity, as it is made more expensive by emission allowances and the planned decommissioning of nuclear power plants in Germany. Some experts speculate the price of electricity can rise by as much as 20 percent for select consumers from summer to the end of the year. 

Food

By and large, food is becoming more expensive. Compared to last September, for example, the price of iceberg lettuce rose by more than 60 percent. Tomatoes and onions increased in cost as well. Oils and fats are also 14 percent more expensive. Milk and butter too, are now pricier.

Consumers can expect more increases in produce at the end of the year. For example, according to fishermen’s estimates, Christmas carp can cost 120 CZK per kilogram this year — ten percent more than last year.

Additionally, eating out in Prague is not as cheap as it is in other places. According to meníčka.cz, consumers dining out for lunch in smaller town restaurants usually pay between 130 and 150 CZK for soup and the main course. In Prague however, the price of such a menu is usually around 200 CZK. In the countryside, it is possible to buy lunch for half this amount. 

Beer prices also rose. For Plzeňský Prazdroj, people will pay almost 50 pennies for a pint from the beginning of October. In pubs, the price of beer may increase by 2 to 5 CZK.

Education

For this back-to-school season, parents dug deeper into their wallets. Kindergarten fees increased by two percent, while tuition fees at private grammar schools and secondary schools rose by another 0.002 percent. Language teaching is now 4.1 percent more expensive.

 

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