Czech Inflation Set to Rise as Energy Costs Soar

Czech economists predict that inflation will rise this autumn due to increasing oil and fuel costs. The government has introduced fuel price regulation, cutting the excise duty on diesel to the European minimum for one month.

Since the Gulf conflict began, prices of oil, natural gas, and electricity have been rising worldwide. This increase is expected to be reflected in consumer prices by October, as energy accounts for 11.2% of the consumer basket used to calculate overall inflation.

Economists warn that if high energy prices persist, they will likely show up across all kinds of goods and could add a certain percentage to inflation. The rise in fuel prices is already feeding into inflation, with petrol and diesel being 26.2% more expensive year-on-year in August.