FX.co ★ Czech Republic Inflation Lowest Since 2018

The Czech Republic recorded a significant drop in its annual inflation rate, which decreased to 1.8% in April 2025 from 2.7% in March, as per preliminary estimates. This figure not only fell below market predictions of 2.1% but also marked the first instance in seven years that inflation dipped beneath the Czech National Bank's 2% target. It was the lowest inflation rate since March 2018. The slowdown in price growth was pronounced in sectors such as food, alcohol, and tobacco, which saw a rise of 3.3% compared to 5.9% in March. Similarly, price growth for goods diminished to 0.2% from 1.6%. Notably, energy costs continued their downward trajectory, dropping by 4.9% from the previous 3.6% decrease. Conversely, service-related inflation saw a slight increase, rising to 4.7% from 4.5% in March. On a month-to-month basis, consumer prices declined by 0.1% in April, marking the first monthly decrease in four months, following a 0.1% rise in March.