The CNB comments on the January 2025 inflation figures
According to figures released today, annual inflation fell to 2.8% in January 2025 and is thus in the upper half of the tolerance band around the CNB’s inflation target. The slowdown was due mainly to a decrease in housing-related energy prices.
Inflation was 0.3 percentage point higher in January than the CNB’s winter forecast. Stronger growth was recorded above all by prices of food, beverages and tobacco. Growth in administered prices was also slightly faster. By contrast, core inflation was slightly lower than forecasted. Fuel prices were fully in line with the forecast.
January 2025
year-on-year in %
MPR Winter 2025
actual value
CPI
2.5
2.8
Administered prices
1.3
1.5
First-round impacts of changes to indirect taxes
0.2
0.2
Adjusted for changes to indirect taxes
Prices of food, beverages, tobacco
2.8
4.0
Core inflation
2.6
2.5
Fuel prices
-0.4
-0.4
Monetary policy-relevant inflation
2.3
2.6
Within core inflation, growth in prices of both goods and services accelerated slightly. The growth in services prices is relatively broad-based and concerns, among other things, accommodation, food services and cultural services. Year-on-year growth in imputed rent accelerated markedly in January, reflecting the ongoing property market recovery.
In January, annual inflation was driven mainly by prices of food and non-alcoholic beverages. Alcohol and tobacco also went up in price. By contrast, inflation was dampened by housing-related energy prices, most notably electricity prices, which switched to a year-on-year decline, and by slowing growth in water supply and sewerage charges. Fuel prices are continuing to fall in year-on-year terms, although the decline is gradually easing.
Consumer prices increased by 1.3% in January compared to the previous month. The degree of traditional repricing at the start of the year was slightly greater overall than the winter forecast had assumed. According to the winter forecast, inflation will slow in the spring months and will be in the upper half of the tolerance band around the CNB’s inflation target this year. Food prices will remain the main driver of inflation in the following quarters.
Jakub Matějů, Deputy Executive Director in charge of the Monetary Department
Inflation decreases to 2.8% in January 2025
The CNB comments on the January 2025 inflation figures
According to figures released today, annual inflation fell to 2.8% in January 2025 and is thus in the upper half of the tolerance band around the CNB’s inflation target. The slowdown was due mainly to a decrease in housing-related energy prices.
Inflation was 0.3 percentage point higher in January than the CNB’s winter forecast. Stronger growth was recorded above all by prices of food, beverages and tobacco. Growth in administered prices was also slightly faster. By contrast, core inflation was slightly lower than forecasted. Fuel prices were fully in line with the forecast.
Within core inflation, growth in prices of both goods and services accelerated slightly. The growth in services prices is relatively broad-based and concerns, among other things, accommodation, food services and cultural services. Year-on-year growth in imputed rent accelerated markedly in January, reflecting the ongoing property market recovery.
In January, annual inflation was driven mainly by prices of food and non-alcoholic beverages. Alcohol and tobacco also went up in price. By contrast, inflation was dampened by housing-related energy prices, most notably electricity prices, which switched to a year-on-year decline, and by slowing growth in water supply and sewerage charges. Fuel prices are continuing to fall in year-on-year terms, although the decline is gradually easing.
Consumer prices increased by 1.3% in January compared to the previous month. The degree of traditional repricing at the start of the year was slightly greater overall than the winter forecast had assumed. According to the winter forecast, inflation will slow in the spring months and will be in the upper half of the tolerance band around the CNB’s inflation target this year. Food prices will remain the main driver of inflation in the following quarters.
Jakub Matějů, Deputy Executive Director in charge of the Monetary Department