Czech Producer Prices Fall More Than Expected

Producer prices in the Czech Republic declined by 3.0% year-on-year in January 2026, more than market forecasts of a 2.4% fall and December’s 2.1% drop. This was the twelfth consecutive month of falling producer prices and the sharpest since August 2016. Prices for manufacturing decreased further (-1.8% vs -1.1% in December), led by motor vehicles, trailers, and semi-trailers (-2.4% vs -2.0%) and food products (-1.6% vs 0.5%). Prices for electricity, gas, steam, and air-conditioning supply fell sharply (-7.4% vs -5.6%). Costs in the mining and quarrying sector also continued to fall, albeit at a slower pace (-1.9% vs -4.2%). In addition, inflation for water supply, sewerage, waste management and remediation services eased to 3.9% from 4.1%. On a monthly basis, producer prices dropped by 0.7%, more than forecasts of a 0.1% fall and following a 0.2% decrease in the previous month.