Experts still note that food will soon rise in price again.

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The growth of consumer prices slowed in July and amounted to 2.3%. Compared with last July, housing and fuel prices in the Czech Republic went up most, clothes and telecommunications became cheaper. Such data was provided by the Statistical Committee of the Czech Republic. In the future, analysts predict a 2.2% rise in inflation.

Fuel prices, compared with July of 2017, rose by 12.6%. The reason for this was the increase in world oil prices as a result of the limitation of oil production by OPEC and Russia. If last year Brent crude oil was worth 48.48 dollars per barrel, in July this year it was sold for 71-80 dollars.

Prices for rented accommodation increased by 3.2%. This was due to the rise in price of utilities, especially electricity: prices for it increased by more than 5%. In addition, because of the large demand for housing prices have risen and the real estate itself.

Due to the increased demand for tourist services, tours abroad went up: the price increase was 12.6%. According to experts, the increased demand is the result of increased income of the Czechs: this year they are ready to spend more on their vacation.

At the same time in the Czech Republic, prices for food and non-alcoholic beverages decreased slightly, as well as for communication services. In the latter case, the reason could be the settlement of the cost of calls within the EU.

Pavel Sobishek, chief economist at Unicredit Bank, noted that the inter-annual price cuts for foodstuffs occurred for the first time since October 2016. Vegetables (12%) fell, vegetables (4.7%), cheeses and cottage cheese (1.7%), sugar (9.8%). At the same time, oil prices rose: it went up by 4.2%.

Pavel Sobishek also drew attention to the fact that in the next months the situation should change. Due to the long heat, the harvest will be less and the prices for food will grow again.

Source: ihned.cz