Czech household costs hold steady: Find out what’s up and down

Consumer prices in Czechia rose by 1.8 percent in December compared with a year earlier, one of the lowest rates in the European Union. The steady pace means that everyday goods and services are still relatively affordable for residents, even as inflation slows across Europe.

The Czech Statistical Office reported on Monday that prices increased at the same rate as in November, keeping inflation below levels in neighboring Visegrad countries. Poland recorded 2.5 percent, Hungary 3.3 percent, and Slovakia 4.1 percent.

Eurostat, the EU’s statistical office, said overall inflation in the bloc slowed to 2.3 percent in December from 2.4 percent in November. The eurozone returned to below the European Central Bank’s 2 percent target, with prices rising 1.9 percent year-on-year.

For consumers in Czechia, the figures indicate that many everyday costs remain relatively stable. Housing, utilities, and food prices have not surged sharply, although some categories, such as energy and fuel, may still fluctuate.

The Czech National Bank has kept its base interest rate at 3.5 percent since May 2025, providing continued stability for loans and mortgages. The ECB also held its key deposit rate at 2 percent, signalling no immediate changes to borrowing costs across the eurozone.

Economists note that the combination of low domestic inflation and stable interest rates offers households, particularly those managing living costs in Prague and other urban centres, relief.

While the EU average shows prices rising faster than in Czechia, residents here still face modest increases for goods and services. The lowest inflation in December was in Cyprus, at 0.1 percent, while Romania recorded the highest at 8.6 percent.

Looking ahead, the CNB and the ECB will continue to closely monitor price trends. The central banks are set to review interest rates in February, but for now, inflation pressures in the Czech Republic remain manageable.