Consumer price indices (inflation) increased by 2.8% year on year, the same as in October. Month on month, inflation increased by 0.1%.

The y/y growth is above the 2% target level declared by the Czech National Bank (CNB), which has maintained the policy of lowering interest rates throughout this year and slightly below the market expectations, eying 3% inflation growth.

Year-on-year “price development in individual divisions of consumer basket was different” than in October despite inflation growth staying the same, commented Pavla Šedivá, head of the Consumer Price Statistics Unit at the Czech Statistical Office (CZSO).

“The only division where prices dropped in y/y comparison was clothing and footwear, by less than 1%,” Šedivá added.

UniCredit Bank economist Patrik Ružomberský told Czech Press Agency (ČTK) that “unexpected m/m drops” occurred in the prices of alcohol, household equipment, health, goods and services.

“For the whole of this year, the domestic inflation is heading towards bearable 2.5%, and there is a good chance that neither the year 2025 won’t bring a price drama either,” head economist at Cyrrus consultancy Vít Hradil was quoted as saying by ČTK.

Analysts gave split responses as to their expectations of the CNB monetary policy, with some interpreting it as a signal of further lowering by 25 basis points and others expecting the interest rate to remain at 4%.

In m/m development, prices grew in food and non-alcoholic beverages, with eggs by 23.3%, meat by 0.4%, and cheese and curd by 1.3%. Prices of fuels and lubricants for personal transport equipment went up by 0.8%. In alcoholic beverages and tobacco, prices of spirits registered a drop of 2.1%, while household appliances fell by 1.8% in furnishings, household equipment and routine household maintenance.

Year on year, in food and non-alcoholic beverages, prices of milk, cheese and eggs increased by 4.3% when eggs alone grew by 31.7%, and prices of meat fell by 1.3%. In housing, water, electricity, gas and other fuels, prices of electricity increased by 9.2%, while prices of natural gas fell by 2.9%. Prices of fuels and lubricants in transportation fell by 7.6% in November, CZSO reported.