Inflation continued decreasing, reaching 2.3% in March

In the short term, the prices of imputed rent, thermal energy, apparel and footwear, but also hairdressing services, for example, rose month-on-month. In a year-on-year comparison, alcohol, fuel, as well as goods and services for household maintenance, such as cleaners contributed to inflation. The price increase of food and energy prices almost completely stopped.

Consumer prices of goods and services increased by 0.1% in March compared to February, the month-on-month price growth has been slowing down since the beginning of the year. Year-on-year inflation reached 2.3% after a year of continuous slowdown, the lowest since the beginning of summer 2021.

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Month-on-month development - March 2024 compared to February 2024

In March, consumer prices rose only very slightly month-on-month. It was mainly influenced by the growth of thermal energy prices by 2.5% and imputed rent by 0.4% in the housing and energy division. Compared to February, apparel and footwear were also more expensive by 1.2%, as well as hairdressing services by 1.1% in the miscellaneous goods and services division. The increase in prices of several items in the field of furniture and home furnishings, especially furniture and cleaning products, continued.

Out of a total of 12 divisions (household expenditure groups), the month-on-month price drop was manifested in 3. The most significant dampening effect was the discounting of food and non-alcoholic beverages¹⁾, the prices of food dropped by 0.5%. Food prices dropped for the first time since the summer of 2023. Prices of food were lower than in February in 6 out of 9 monitored food items. Consumers paid less mainly for fruit, milk, cheese and eggs, as well as for vegetables, bread and cereals. Prices of sugar and confectionery also dropped, but prices also decreased of alcohol in the division of alcoholic beverages and tobacco.

Year-on-year development – March 2024 compared to March 2023

Inflation in a year-on-year comparison currently reached a growth level of 2.3%. Year-on-year, prices were higher in all 12 divisions (household expenditure groups). The most significant impact on the overall result of inflation was the price increase in three divisions of the consumer basket: transport, alcohol and tobacco, as well as furniture and household appliances. Double-digit growth continued in the field of education.

In the field of alcohol and tobacco products, the overall rate of inflation was negatively affected, especially the prices of distillates, which increased by 19% year-on-year. The impact of the consumption tax increase was still noticeable in tobacco prices, which rose  by 9.1%.

However, prices in the field of transportation, especially fuel, are increasing more and more dynamically. After a year of declines, they became higher for the second month, in March they were higher than a year ago by up to 5.1%. The increase of fuel prices was also reflected in the prices of transportation services, especially in bus transport.

In the field of furniture and furnishings, prices of cleaners and routine household maintenance (e. g. carpet cleaning) were higher year-on-year.

The two most significant expenditure groups of households - food with non-alcoholic beverages and housing and energy had a significant dampening effect on the overall result of inflation. In the field of housing and energy, the pace of price increases has hardly changed year-on-year. The prices of food were higher only 0.6% year-on-year, compared to 29% a year ago. The increase in prices slowed down, the price increase did not exceed 6.5%. Year-on-year decline was recorded in 3 items, consumers paid less for milk, cheese and eggs (by 4.5%), also vegetables (by 4.2%) and for oils and fats (by 3.9%).

In total, in the first three months of 2024, consumer prices increased by 3.2% year-on-year.

Development of core and net inflation

In February's the total year-on-year inflation rate was 2.3%, core inflation reached 2.7% and net inflation 3.4%. Month-on-month core inflation reached a value of 0.1% and net inflation a value of 0.3%.

Core inflation was affected by price level growth after excluding the impact of changes in regulated prices (e.g. energy prices) and other administrative measures (e.g. tax adjustments, etc.). Net inflation is core inflation without changes in food prices.