All analysis from category Macro comment
Macro comment
Retail in October: Slightly sluggish growth in domestic demand
Domestic demand is the main pillar of current economic growth. Supported by wage growth and low unemployment, households returned to stores after the wave of inflation, and retail naturally benefited from this. However, domestic demand seems to have slowed down somewhat in recent months. In October, retail sales rose by 0.4 percent month-on-month, with year-on-year growth reaching only 2.8 percent.
Macro comment
Wages in Q3: Rapid growth continues
The current economic growth is primarily driven by strengthening domestic demand, which is supported by rising household incomes. The average gross wage increased by 7.1 percent year-on-year to CZK 48,295 in Q3. After adjusting for inflation, the average wage rose by 4.5 percent in real terms.
Macro comment
Consumer prices in November: Inflation calms down
One of the main positive aspects of the Czech economy is stability. Macroeconomic stability. An essential part of this is price stability, i.e. low inflation. In 2022 and 2023, a high wave of inflation swept through Czechia, but now price developments are back under control. In November, the consumer price index fell by 0.3 percent and year-on-year inflation fell to 2.1 percent.
Macro comment
Consumer prices in October: Higher food and clothing prices
Inflation remains under control. Although pockets of higher inflation in service prices are still lingering, price developments for most items in the consumer basket are moderate. The consumer price index rose by 0.5 percent month-on-month in October, with year-on-year inflation reaching 2.5 percent.
Macro comment
Unemployment in October: Slow rise
Autumn on the labor market is usually marked by a significant influx of new job seekers at employment offices in September and their gradual absorption in October and November. Therefore, unemployment usually falls in October. However, this year is different. The number of job seekers registered with employment offices rose from 337,925 in September to 340,509 at the end of October. The share of unemployed people in the population increased from 4.5 to 4.6 percent. Last October, it was 3.8 percent.
