FX.co ★ Czech Producer Prices Fall More Than Expected

Producer prices in the Czech Republic fell by 3.0% year-on-year in January 2026, a steeper decline than both market expectations of a 2.4% drop and December’s 2.1% decrease. This marked the twelfth consecutive month of producer price deflation and the sharpest fall since August 2016. Manufacturing prices weakened further (-1.8% vs. -1.1% in December), driven mainly by lower prices for motor vehicles, trailers and semi-trailers (-2.4% vs. -2.0%) and for food products (-1.6% vs. +0.5%). Prices in the electricity, gas, steam and air-conditioning supply sector also recorded a pronounced decline (-7.4% vs. -5.6%). Costs in mining and quarrying continued to fall, though at a slower pace (-1.9% vs. -4.2%). Meanwhile, price growth in water supply, sewerage, waste management and remediation services moderated to 3.9% from 4.1%. On a monthly basis, producer prices decreased by 0.7%, the largest drop in nine months, following a 0.2% decline in the previous month.