Saturday, 18 April 2026
Consumer price growth in the Czech Republic accelerated in March, driven mainly by fuel costs, while housing-related expenses continue to put pressure on overall inflation, according to data from the Czech Statistical Office.
Annual inflation reached 1.9 percent in March, up from 1.4 percent in February, while prices increased by 0.6 percent month-on-month. The rise brings inflation close to the Czech National Bank target of 2 percent, with analysts expecting further increases in the coming months.
Fuel prices were the main contributor to the latest increase. Pavla Šedivá from the statistical office noted that diesel and petrol prices reached their highest levels in recent periods. “The most significant impact on consumer prices was the fuel price in March. Diesel was sold at petrol stations for an average of 42 Kč/l and petrol Natural 95 for 38.10 Kč/l. In the case of Natural 95 petrol, this was the highest value since July 2024 and in the case of diesel even from November 2022,” she said.
According to Zdeněk Pikhart, earlier factors that had helped contain inflation—such as adjustments to renewable energy payments and lower food prices—have now been offset by higher fuel costs.
“The supply shock to fuel prices thus caught the economy in a relatively favorable situation in March, with briskly rising economic activity and inflation below the target. However, the month-on-month fuel price increase has largely exhausted this pillow and put inflation back in close proximity to two percent,” Pikhart said.
Beyond energy, analysts highlight housing-related costs as a key structural driver of inflation. Petr Dufek pointed to rents and imputed rent as major contributors.
“This is mainly due to the increasing rent and the so-called imputed rent, which reflects the high prices of apartments in the real estate market. Only these two items are behind almost half of the current annual inflation,” he said.
Rents rose by 6.1 percent year-on-year, while imputed rent, reflecting the cost of home ownership, increased by 5.4 percent. Service prices overall were up 4.7 percent, compared with only marginal growth in goods prices.
In a broader European comparison, inflation in the Czech Republic remains relatively moderate, although it is higher in neighbouring markets including Slovakia, Austria, Poland and Germany.
Analysts expect inflation to rise further in April, largely due to continued pressure from oil prices. Miroslav Novák said: “In April, inflation is very likely to accelerate further due to high oil prices. In my opinion, the price caps on margins and the lower excise tax on diesel will have only limited effects.”
The central bank expects inflation to remain contained over the full year, with average growth projected to stay below 3 percent, although external factors such as geopolitical tensions and commodity prices continue to pose risks.
Source: CTK
