The Czech Republic’s consumer price inflation eased somewhat at the end of the year, largely driven by the development in transport cots, data from the Czech Statistical Office showed on Wednesday.
Consumer prices climbed 15.8 percent year-over-year in December, slower than the 16.2 percent rise in November. Meanwhile, economists had expected inflation to rise to 16.4 percent.
The overall strong inflation in December was largely driven by a 25.5 percent surge in prices of food and non-alcoholic beverages.
The annual price growth in transportation slowed to 9.2 percent in December from 13.6 percent in the prior month, linked to price falls in cars, fuel, and lubricants.
Utility costs were 17.0 percent more expensive compared to last year, and those of clothing and footwear also registered a double-digit growth of 17.9 percent.
On a monthly basis, consumer prices remained flat in December versus an expected increase of 0.5 percent.
The Czech National Bank stated at its November meeting that inflation will fall rapidly from double-digit levels in 2023 due to slowing cost growth, cooling external demand, and previous tightening of domestic monetary policy, all of which are helping to dampen domestic demand and the labour market.