Czech Inflation Accelerates in April as Energy and Fuel Costs Rise

Consumer price growth in the Czech Republic accelerated in April, reaching 2.5% year-on-year after standing at 1.9% in March, according to preliminary figures published by Czech Statistical Office.

On a monthly basis, prices increased by 0.5%, with analysts attributing much of the rise to higher fuel and energy costs following tensions in the Middle East and disruptions affecting global oil markets.

The latest figures indicate that the earlier decline in energy-related prices has ended. While energy prices had still been falling in March, April recorded renewed annual growth in this category.

Among major consumer groups, alcoholic beverages and tobacco recorded the strongest annual increase, while food prices continued to decline compared with the same period last year. Services inflation also remained significantly higher than goods inflation.

Miroslav Novák, chief analyst at Citfin, said the increase in inflation was driven mainly by fuel prices, which rose sharply year-on-year.

Analysts noted that higher fuel costs are likely to spread gradually into broader areas of the economy through transportation and production expenses, potentially putting additional pressure on inflation in the coming months.

According to Martin Komrska, economist at UniCredit Bank, continued disruptions to oil and energy supplies linked to the situation around the Strait of Hormuz could contribute to further increases in consumer prices if global energy shortages intensify.

Despite the renewed acceleration in inflation, economists generally do not expect Czech National Bank to raise interest rates immediately. Analysts instead believe the central bank will continue to monitor whether the current rise represents a temporary external shock or a broader inflationary trend.

David Marek, chief economist at Deloitte, said the combination of external energy pressures, domestic demand and fiscal conditions would require closer monitoring from policymakers.

Inflation had remained below the Czech National Bank’s 2% target during the first quarter of 2026, reaching its lowest level in February. Analysts said earlier moderation in inflation was partly supported by government measures shifting renewable energy support costs away from households and onto the state budget.