Czech Republic Inflation Confirmed at 3-Month Low

The annual inflation rate in the Czech Republic slowed to 2.5% in August 2025 from 2.7% in the previous month, confirming initial estimates. The latest figure marked the lowest reading since May, as prices softened for food and non-alcoholic beverages (4.7% vs 5.2% in July), alcoholic beverages and tobacco (2.7% vs 4.4%), and health (2.7% vs 3.2%). Additionally, costs declined further for clothing and footwear (-1.9% vs -1.7%). On the other hand, inflation continued to increase for furnishings, household equipment and maintenance (1.8% vs 1.6%) and recreation and culture (4.2% vs 3.9%), while deflation slowed for transport (-1.1% vs -1.7%). On a monthly basis, consumer prices rose by 0.1% in August, its lowest in five months, slowing from a 0.5% gain in the preceding period.