Czech inflation third lowest in EU for August as prices rise across Europe

Czechia had the third-lowest inflation rate in the European Union in August, according to new Eurostat data, even as price growth accelerated across much of Europe.

Using the EU's harmonized measure, Czech annual inflation stood at 1.5 percent in August, up slightly from 1.3 percent in July. Only Sweden, at 0.3 percent, and Estonia, at 1.3 percent, recorded lower rates.

By comparison, annual inflation across the EU accelerated from 3 percent in July to 3.2 percent in August. Prices rose in 20 of the bloc's 27 member states compared with the previous month.

The highest inflation rates were recorded in Romania at 6.3 percent, Lithuania at 5.6 percent and Cyprus at 5.2 percent.

Eurostat's 1.5 percent figure differs from the headline Czech inflation rate reported domestically because the EU agency uses the Harmonized Index of Consumer Prices, or HICP, to make rates comparable between member states.

The Czech Statistical Office reported last week that inflation using its national methodology rose from 1.7 percent in July to 1.9 percent in August.

Inflation also accelerated in the eurozone, reaching 3.2 percent in August from 2.9 percent a month earlier. Eurostat revised the figure slightly downward from its preliminary estimate of 3.3 percent.

Energy was a major contributor to eurozone inflation, while services also continued to put upward pressure on prices.

The latest figures from Eurostat underline an increasingly wide gap within the EU: while Czechia's harmonized inflation remains below 2 percent, several member states are experiencing price growth of more than 5 percent.