“Who thought that the consequences of the coronavirus pandemic would lead the Czech Republic to deflation was deeply mistaken. In the year-on-year comparison, prices of food, catering services, rent, electricity and many other products and services increased. difficult times, “said economist Štěpán Křeček.
The June rise in consumer prices exceeded the expectations of both analysts and the Czech National Bank. Initially, year-on-year growth was expected at about 2.5 to 3 percent, but eventually inflation rose to 3.3 percent.
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“Compared to June last year, the rise in the price level of alcohol and tobacco has contributed most significantly to the rise in prices. , acquired during the period of effectiveness of the lower excise tax, “explained the economist and member of the National Economic Council of the Government (NERV) Lukáš Kovanda.
Prices of tobacco products rose by 12.2 percent, beer by 5.2 percent and wine by 5.4 percent. “Summer barbecue lovers were certainly not pleased with the news that meat prices rose by 8.8 percent year on year and sausage prices by as much as 11.6 percent. Lovers of a healthy lifestyle, who had to come to terms with a 27.2 percent increase in fruit prices, may also be upset.” “Hamster approached. The rise in prices was also reflected in sugar and eggs. Pork rose by a fifth, and the price of flour rose.
On the contrary, they made fuel a little cheaper. “For Czech motorists, this year’s June, but also the first week of July, was the cheapest since 2004,” Kovanda compared.
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But the outlook for the future is more positive. “The coronavirus crisis will have a stronger impact on inflationary pressures in the second half of this year. Government measures to support the economy and employment will gradually end. The deteriorating labor market situation will exacerbate inflationary pressures, both through weaker wage growth and weaker overall demand in the economy, “explained the economist. This year, final inflation should be 2.7 percent.
Take a look at Nova TV’s report on rising rental prices in Prague:
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