Cost of living continues to climb in Czechia as inflation remains high

Consumer prices in Czechia rose 0.1 percent month on month in October, according to new figures from the Czech Statistical Office (CZSO). The increase was driven by higher prices for food, non-alcoholic beverages, and clothing. Prices dropped for housing items like electricity, natural gas, and heating.

Year on year, consumer prices climbed 8.5 percent last month, up 1.6 percentage points from September. The acceleration was primarily due to electricity prices, which saw a 148.6 percent jump from October 2021. Natural gas and heating prices rose at slower rates compared to previous months. Food prices increased at a more moderate pace as well.

Housing costs had the biggest impact on the annual inflation rate. In addition to electricity, rent and water/sewage prices increased substantially. Prices also rose in other sectors such as recreation, dining out, and lodging. Transportation costs declined due to lower prices for vehicles and fuel.

Pavla Šedivá, head of consumer price statistics at the statistical office, said inflation would be 5.8 percent without last year's energy subsidy rolled into electricity costs. He noted inflation over the past 12 months was 12.1 percent in October.

Starting in January 2024, the statistical office will calculate consumer price indices using 2022 expenditure weights starting in January, along with other methodology changes. This is meant to better reflect current household spending patterns.