Industrial producer prices in the Czech Republic recorded a year-on-year increase of 1.1% in August, down slightly from July’s 1.7% rise. This marks the fifth consecutive month of price increases in the industrial sector, according to data released by the Czech Statistical Office (ČSÚ). In contrast, agricultural prices have been on a steady decline for the past 16 months, dropping by 0.5% in August.
Construction prices saw a 1.7% year-over-year increase, while market services for businesses rose 3.4%. On a monthly basis, industrial prices fell by 0.4%, with agricultural prices dropping 1.4%. However, construction prices edged up by 0.1%, and market services for businesses saw a 0.5% increase compared to July.
“The supply side continues to develop favorably, preventing new inflationary pressures,” said Martin Kron, an analyst at Raiffeisenbank. He noted that while price stabilization is expected to continue, minor fluctuations could still occur.
In the industrial sector, price hikes were recorded in machinery repairs, chemicals, and electronic equipment. On the other hand, prices for paper products, basic metals, and oil dropped significantly, with oil and gas prices falling by 15.7%.
Agriculture saw mixed trends, with crop production prices decreasing by 3.6%, while livestock production experienced a 3.2% rise. Notably, the price of potatoes fell by 12.7%, while cattle and milk prices rose by 8.2% and 11.3%, respectively.
Analysts do not foresee the current producer price trends as a risk to inflation. As a result, the Czech National Bank is expected to continue easing monetary policy next week, with a potential cut in the base interest rate to 4.25%.
Source: ČSÚ and CTK
