FX.co ★ Czech Republic Inflation Confirmed at 3-Month Low

The Czech Republic's annual inflation rate eased to 2.5% in August 2025, down from 2.7% in July, in line with preliminary estimates. This represents the lowest inflation rate since May. The slowdown was driven by decreased price increases in various categories: food and non-alcoholic beverages slowed to 4.7% from 5.2%, alcoholic beverages and tobacco to 2.7% from 4.4%, and health services to 2.7% from 3.2%. Additionally, there was a more significant drop in costs for clothing and footwear, which fell by 1.9% compared to a 1.7% decline previously. On the contrary, the inflation rate rose for furnishings, household equipment, and maintenance, moving from 1.6% to 1.8%, and for recreation and culture, increasing from 3.9% to 4.2%. Meanwhile, deflation in the transport sector eased slightly, moving from -1.7% to -1.1%. On a monthly basis, consumer prices recorded a 0.1% increase in August, marking the smallest rise in five months following a more substantial 0.5% gain in July.