Tell us: How has inflation affected your financial health in Czechia?

There’s no doubt that the extreme inflation rate looming over the Czech Republic has been felt by many in one way or another. But what do the numbers mean and how does inflation affect our daily lives?

Inflation devalues the savings of Czech households while most goods and services become more expensive. As inflation goes up, purchasing power goes down – meaning your hard-earned crowns don’t go as far as they used to.

Although the inflation rate in Czechia has been steadily increasing over the course of the past months (in July, it rose by 17.5 percent, the highest since December 1993), analysts and central bankers say that the worst is yet to come. In the fall, the inflation wave should culminate with a value of around 20 percent. 

One indicator that inflation is having a real impact on households in Czechia is data from the Czech Statistical Office which shows a sharp increase in prices accompanying a drop in household consumption. This noticeable decrease in demand confirms that consumer purchasing power is gradually becoming exhausted.

Among the categories where households are feeling the biggest crunch are gas, food, and utilities. In the Czech Republic, there has also been a steep decline in the sales of clothing and footwear (by 15.3 percent) as well as culture and recreation spending (by 14.8 percent). 

How has inflation affected your financial health in Czechia? Give us your feedback in the survey below.