The CNB comments on the June 2025 inflation figures
Annual inflation increased from 2.4% in May to 2.9% in June. However, the rise in the inflation rate was anticipated and is not expected to continue. Conversely, the CNB’s forecast expects a decline in inflation for the remainder of 2025.
Inflation has been fluctuating this year, mainly due to food, beverage and tobacco prices. The increase in June was also driven by this factor. However, growth in food prices should gradually subside in the coming months.
Nonetheless, core inflation remains elevated at 3% and, in combination with volatile food and fuel prices, requires a very cautious monetary policy approach by the CNB.
Within core inflation, market services prices continue to grow strongly (4.6%). The growth has recently been increasingly driven by rising housing costs. This is being reflected in all the components of the housing category, from a double-digit increase in prices of new property, through construction work, to market rents that accelerated to 6.3% (5.7% in May).
The overall price developments in the domestic economy have not yet fully stabilised and require tight monetary conditions.
Petr Sklenář, Executive Director of the Monetary Department
Inflation reaches 2.9% in June
The CNB comments on the June 2025 inflation figures
Annual inflation increased from 2.4% in May to 2.9% in June. However, the rise in the inflation rate was anticipated and is not expected to continue. Conversely, the CNB’s forecast expects a decline in inflation for the remainder of 2025.
Inflation has been fluctuating this year, mainly due to food, beverage and tobacco prices. The increase in June was also driven by this factor. However, growth in food prices should gradually subside in the coming months.
Nonetheless, core inflation remains elevated at 3% and, in combination with volatile food and fuel prices, requires a very cautious monetary policy approach by the CNB.
Within core inflation, market services prices continue to grow strongly (4.6%). The growth has recently been increasingly driven by rising housing costs. This is being reflected in all the components of the housing category, from a double-digit increase in prices of new property, through construction work, to market rents that accelerated to 6.3% (5.7% in May).
The overall price developments in the domestic economy have not yet fully stabilised and require tight monetary conditions.
Petr Sklenář, Executive Director of the Monetary Department