Inflation slows to 2.3% in September, helped by food prices
The CNB comments on the September 2025 inflation figures
Annual inflation fell further to 2.3% in September (from 2.5% in August), its lowest level since April this year. This was lower than our forecast (2.6%). We expect inflation to remain close to recent values for the rest of the year. Given the persisting elevated core inflation, there are still reasons for a cautious monetary policy approach.
Repeated fluctuations in the inflation rate this year are largely caused by food and beverage prices. The same was true in September, when a further slowdown in food price growth (to 2.7% y-o-y from 4.7% in August) led to a decline in headline inflation. We do not expect any further significant slowdown in food price growth for the rest of the year.
Volatile items helped lower headline inflation, but core inflation was unchanged at 2.8%. In particular, inflation in market services remained stable and elevated (4.4% y-o-y). Core inflation has been affected by rising housing costs this year, but they are also continuing to stabilise as expected. In September, year-on-year growth in imputed rent remained at 4.9% for the fourth month in a row.
The evolution of core inflation shows that 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 slows to 2.3% in September, helped by food prices
The CNB comments on the September 2025 inflation figures
Annual inflation fell further to 2.3% in September (from 2.5% in August), its lowest level since April this year. This was lower than our forecast (2.6%). We expect inflation to remain close to recent values for the rest of the year. Given the persisting elevated core inflation, there are still reasons for a cautious monetary policy approach.
Repeated fluctuations in the inflation rate this year are largely caused by food and beverage prices. The same was true in September, when a further slowdown in food price growth (to 2.7% y-o-y from 4.7% in August) led to a decline in headline inflation. We do not expect any further significant slowdown in food price growth for the rest of the year.
Volatile items helped lower headline inflation, but core inflation was unchanged at 2.8%. In particular, inflation in market services remained stable and elevated (4.4% y-o-y). Core inflation has been affected by rising housing costs this year, but they are also continuing to stabilise as expected. In September, year-on-year growth in imputed rent remained at 4.9% for the fourth month in a row.
The evolution of core inflation shows that 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