Czechia: Consumer prices decline month-on-month, annual inflation at 3.0% in December 2024

Month-on-Month Overview
Consumer prices in December 2024 decreased by 0.3% compared to November, driven primarily by declines in the prices of food and non-alcoholic beverages and alcoholic beverages and tobacco.
• In the food and non-alcoholic beverages category, notable price drops included:
• Fruit: -2.8%
• Vegetables: -1.8%
• Poultry: -2.2%
• Pork: -1.9%
• UHT semi-skimmed milk: -4.0%
• Cheese and curd: -1.0%
• However, prices of potatoes rose significantly (+10.9%), as did butter prices (+5.1%).
• In alcoholic beverages and tobacco, decreases were observed in:
• Wine: -5.5%
• Spirits: -2.5%
• Beer: -1.2%

In housing, water, electricity, gas, and other fuels, natural gas prices dropped by 2.4%. Additionally, prices for personal care products and services under miscellaneous goods and services decreased by 1.1%.

Overall, the prices of goods decreased by 0.5%, while service prices remained unchanged compared to November.

Year-on-Year Comparison
Consumer prices rose by 3.0% in December 2024 compared to the same month in 2023, up 0.2 percentage points from November.

Key contributors to this acceleration included:
• Food and non-alcoholic beverages:
• Eggs: +36.3% (up from +31.7% in November)
• Oils and fats: +16.9% (up from +10.0%)
• Fruit: +5.9% (up from +2.8%)
• Chocolate and chocolate products: +28.0% (up from +15.8%)
• Transport: Slower declines in fuel and lubricant prices (-2.6% year-on-year compared to -7.6% in November).

The greatest influence on the annual price increase came from:
1. Housing, water, electricity, gas, and other fuels:
• Rentals: +6.2%
• Water supply: +10.9%
• Sewage collection: +13.4%
• Electricity: +8.0%
• Heat and hot water: +8.5%
• Natural gas prices decreased by 5.5%.
2. Alcoholic beverages and tobacco:
• Spirits: +3.4%
• Beer: +4.8%
• Tobacco products: +7.0%
• Wine prices decreased by 2.3%.
3. Restaurants and hotels:
• Catering services: +6.4%
• Accommodation services: +9.0%.
4. Recreation and culture: Package holiday prices increased by 4.9%.

Price reductions were noted in clothing and footwear, with garments down 0.4% and footwear down 2.3%.

Goods prices increased by 1.7% year-on-year, while services rose by 5.0%.

2024 Average Inflation
The average inflation rate for 2024 was 2.4%, with goods prices rising by 0.9% and services by 5.1%. Pavla Sediva, head of the Consumer Price Statistics Unit at CZSO, stated, “The year’s inflation figures reflect relatively stable developments despite challenging market conditions.”

Harmonized Index of Consumer Prices (HICP)
Preliminary data indicate that the HICP for Czechia in December fell by 0.3% month-on-month but rose by 3.3% year-on-year (up from 3.1% in November).
• In the Eurozone, the MUICP stood at 2.4% in December, with the highest inflation in Croatia (4.5%) and the lowest in Ireland (1.0%).
• For the EU27, the average HICP in November was 2.5%, with the highest inflation in Romania (5.4%) and the lowest in Ireland (0.5%).

The consumer price index, based on the 2015 average as a base period, reached 152.0% in December, compared to 152.4% in November.

This summary provides an in-depth look at consumer price trends in 2024, demonstrating the dynamics of inflation across various sectors.

Source: Czech Statistical Office