Czech producer prices spell pain for consumers

Key arguments

• September producer prices surprised on the upside in both industry and agriculture.
• Annual industrial PPI growth is seen peaking above 6% in January, agricultural PPI above 12% by mid-2027.
• Second-round effects are emerging as firms struggle to absorb costs, lifting core inflation.
• Policy rates will rise, but weakening activity and profitability will cap hikes below market pricing.

Corresponding source evidence

1. Higher policy rates are therefore to be expected, though softening economic output will limit how high they go Producer prices set to accelerate Czech industrial producer prices surged 3.7% year-on-year in September and gained 1.2% month-on-month, with both figures coming in above market expectations.
2. Taking the latest data into account, we expect annual industrial producer price growth to peak above 6% in January, while agricultural producer price growth is set to climb above 12% by the middle of next year. · next year
3. And yes, with these underlying price pressures set to filter through to CPI sooner or later, consumers may soon have to dig a little deeper into their pockets.