Czech consumer price indices increased by 2.6% year on year and stagnated month on month in May.

Inflation is down by 0.3 percentage points on April, when it accelerated on March 2% figure, ending the previous easing trajectory.  

“The May price level remained unchanged in comparison with the previous month. Only significant movements were recorded in most divisions of the consumer basket. However, they offset each other,” commented Pavel Sediva, Head of the Consumer Statistics Unit at the Czech Statistical Office (CZSO).

In year-on-year terms, the easing on April growth was mainly influenced by prices in food and non-alcoholic beverages, where prices of flour dropped by 23.5% y/y in May (compared to the decreased of 19.1% in April), meat prices dropped by 5.8% (-3.8% in April), eggs by 23.5% (-15.5%), fruit by 6.7% (-2.8%). Growth of non-alcoholic beverages prices moderated to 4% (compared to the growth of 5.4% in April).

“Without the influence from the prices of food the y/y inflation would be at 3.9%,” head economist at the Czech Banking Association Jakub Seidler told Czech Television, pointing out the Czech National Bank’s May prognosis was at 2.5%.

Housing, water, electricity, gas and other fuels sector drove the price y/y growth in May, with actual rentals up by 7.2%, prices of materials and services for maintenance and repair of the dwelling by 4.6%, water supply by 10.9%, sewage collection by 10.5%, electricity by 11.1%, heat and hot water by 3.6%. Prices of natural gas dropped by 6.6% and prices of solid fuels by 3.9%.     

In the transportation sector, prices of fuels and lubricants for personal transport equipment increased by 10.8% y/y. In the alcoholic beverages and tobacco sector, prices of spirits increased by 6.1% , wine by 1.1%, beer by 6.3% and tobacco products by 7.3%.