FX.co ★ Czech Producer Deflation Steepest Since 2016

In December 2025, producer prices in the Czech Republic experienced a year-on-year decline of 2.1%, which was noticeably more significant than the anticipated 0.9% decrease and followed a 1.3% reduction recorded in November. This pronounced drop represented the most severe producer price deflation since September 2016. The primary factor driving this trend was the persistent price reduction in the manufacturing sector, which saw a 1.1% decrease compared to a 0.8% decline in November. The downturn was particularly evident in chemicals and chemical products, which plummeted by 8.1%, and in motor vehicles, trailers, and semi-trailers, which fell by 2%. Additionally, deflationary pressures escalated in the mining and quarrying sector, falling by 4.2% compared to 4.1% the previous month, and in the electricity, gas, steam, and air-conditioning supply, which dropped by 5.6% from a 3.2% decrease. Conversely, prices for water supply, sewerage, waste management, and remediation services remained stable, holding steady at an increase of 4.1%. On a month-to-month basis, producer prices declined by 0.2% in December, reversing a 0.3% increase from the prior month.