Czech Inflation Picks Up to 2.5% in October, Driven by Food Prices

Consumer prices in the Czech Republic rose by 2.5% year on year in October, marking a slight acceleration from September’s 2.3%, according to the latest estimate from the Czech Statistical Office. Month on month, prices increased by 0.5%, suggesting that cost pressures remain persistent despite the central bank’s cautious monetary stance.

Economists attribute the upturn mainly to higher food costs, which grew faster than anticipated and offset the continued decline in energy prices. Analysts had expected inflation to stabilise or even slow slightly, but the recent surge in food categories such as dairy and bakery products surprised the market.

Price growth for goods and services showed a mixed pattern. Goods saw modest gains compared to September, while services continued to post above-average annual increases, reflecting ongoing demand in sectors such as transport, hospitality, and leisure.

Energy costs, including fuel and utilities, remained the only major category to record a year-on-year decrease—around 3% lower than a year earlier—helped by the strong koruna and subdued global oil prices. Without energy, overall inflation would have reached roughly 3.3% in October, according to analyst calculations.

This year’s highest inflation level was observed in June at 2.9%, followed by a gradual cooling during the summer. Economists now expect price growth to edge slightly higher again toward the end of the year, reaching around 2.7% in December due to the statistical effect of a low comparison base from 2024.

Financial analysts agree that the latest data are unlikely to alter the Czech National Bank’s interest-rate policy. The key repo rate stands at 3.5%, and the Bank has signalled limited room for further cuts in the near term.

The final, detailed inflation report for October will be released by the Czech Statistical Office on 11 November 2025, confirming the structure of price movements across categories.

Source: Czech Statistical Office (ČSÚ) preliminary estimate; analyst comments from Czech News Agency and major financial institutions.