Czech Republic sees 2nd-highest annual inflation rate ever in 2022

Average inflation in the Czech Republic was 15.1 percent in 2022, the second-highest level in three decades, according to data published Wednesday by the Czech Statistical Office (CSU).

The highest ever average annual inflation rate in the Czech Republic was in 1993, when it reached 20.8 percent.

The price of goods increased by 16.8 percent in the whole of 2022, and the price of services by 12.3 percent, said head of CSU's Consumer Price Statistics Department Pavla Sediva.

In year-on-year terms in December, prices rose by 15.8 percent, a slight decrease from 16.2 percent in November.

According to the CSU, the main reason for the drop-off was a slow-down in prices for cars and fuel, which increased by 9.2 percent and 4.4 percent respectively. This was compared to 12.7 percent and 14.5 percent increases in the previous month.

The CSU also noted that price hikes in the food and non-alcoholic beverage sector, as well as for housing, continued to have the greatest impact on rising prices.

The Czech National Bank (CNB) welcomed the slowdown in month-to-month inflation. This was below predicted levels, but still well above the bank's tolerance threshold of 3 percent.

The CNB expects inflation to momentarily rise in January, before receding in the following months.