The CNB comments on the July 2025 inflation figures
As expected, annual inflation slowed to 2.7% in July (from 2.9% in June). The CNB's forecast expects only a slight decrease in inflation for the remainder of 2025, and there are still reasons for a cautious monetary policy approach.
Inflation has been fluctuating this year mainly due to food and beverage prices, with these items also contributing to the decline in year-on-year inflation in July. In the second half of the year, growth in food prices should gradually subside, but will remain elevated.
Another positive surprise was the slightly lower core inflation of 2.7% in July (compared to 3% in June), reflecting a moderate slowdown in the growth of prices of goods (from 0.7% to 0.4%) and services (from 4.6% to 4.4%). Nonetheless, inflation in services remains elevated, partly due to higher housing costs. However, even these items saw a slight improvement in July.
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 slows to 2.7% in July
The CNB comments on the July 2025 inflation figures
As expected, annual inflation slowed to 2.7% in July (from 2.9% in June). The CNB's forecast expects only a slight decrease in inflation for the remainder of 2025, and there are still reasons for a cautious monetary policy approach.
Inflation has been fluctuating this year mainly due to food and beverage prices, with these items also contributing to the decline in year-on-year inflation in July. In the second half of the year, growth in food prices should gradually subside, but will remain elevated.
Another positive surprise was the slightly lower core inflation of 2.7% in July (compared to 3% in June), reflecting a moderate slowdown in the growth of prices of goods (from 0.7% to 0.4%) and services (from 4.6% to 4.4%). Nonetheless, inflation in services remains elevated, partly due to higher housing costs. However, even these items saw a slight improvement in July.
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