Retail Spending in the Czech Republic Edges Higher as Price Growth Slows at Start of Year

Household spending in the Czech Republic increased over the past year, while new data for the opening month of this year show that the rise in living costs has eased to its lowest pace in many years, offering a mixed but generally stable picture of consumer conditions.

Official statistics indicate that the value of goods sold in stores, not including vehicle purchases, was moderately higher than in the previous year. Sales through online channels and purchases of everyday items contributed to the overall improvement, although the final months of the year showed a gentler rhythm compared with earlier periods. Economists say the yearly gain reflects gradually improving purchasing power and continued willingness among households to spend, even if caution remains visible in some segments.

Separate figures released at the same time show that the cost of goods and services in January rose only slightly compared with a year earlier, marking the slowest annual increase seen in nearly a decade. Lower energy-related expenses played an important role in the calmer price environment, while certain services and selected food categories still recorded noticeable increases.

The combination of firmer retail turnover and milder price development suggests that consumers entered the new year under more favourable financial conditions than in recent periods. Analysts note, however, that the moderation in prices does not eliminate all pressures on household budgets, as some areas of spending continue to trend upward. Even so, the latest data point to a more balanced economic backdrop, with spending activity holding steady while overall price growth remains contained.