Czech Services Inflation: Prices Rise for Concerts, Healthcare & More (January 2024)

Czechia’s inflation rate continued its downward trend in January 2026, reaching 1.6% year-on-year, the lowest level since November 2016, according to data released by the Czech Statistical Office (ČSÚ) on February 13, 2026. However, while overall inflation is cooling, the cost of services is bucking the trend, rising at a significantly faster pace and contributing to persistent price pressures.

The decline in the headline inflation figure was largely attributed to the removal of a subsidy for supported energy sources from the calculation of electricity prices, as noted by Pavla Šedivá, head of the consumer price statistics department at ČSÚ. Despite this, the monthly increase in consumer prices was 0.9% in January, indicating ongoing inflationary dynamics. The average annual inflation rate, measuring the price level over the last twelve months compared to the previous twelve, stood at 2.4% in January, slightly down from 2.5% in 2025.

Services Inflation Outpaces Goods

While the price of goods has seen slower growth, or even declines in some areas – notably energy and fuels – services are experiencing robust price increases. Services prices rose by 4.7% year-on-year in January. This divergence mirrors a broader trend observed in many economies, including the United States, following the pandemic and the subsequent energy crisis.

Several specific services saw substantial price hikes. Monthly radio fees increased by 30.8%, while concert tickets rose by 20.6% and disco entrance fees by 17.8%. Television fees increased by 17.7%. Even essential services like autotaxi transport (freight) and ski lift tickets saw increases of 14.8% and 14.7% respectively. Healthcare costs, specifically fully covered spa treatment, rose by 12.4%, and psychotherapy saw a 12.2% increase.

Wage and Rental Costs Driving Service Inflation

Economists attribute the persistent inflation in the services sector to rising wages and rental costs. Pavel Peterka, chief economist at XTB, explained that the higher wage dynamics in the services sector, where labor costs represent a larger proportion of overall expenses compared to industries like manufacturing, are a key driver. “Wages will probably grow a little faster than expected, which could again push inflation up, for example through services,” he said.

Petr Dufek, chief economist at Banka Creditas, highlighted the significant impact of rising rental costs, both market rents and imputed rental costs (the estimated cost of owning a home). He noted that these costs are a substantial component of service prices and are contributing to the overall inflationary pressure.

The increase in prices for cultural and sporting events is also linked to rising costs, including labor. “It’s due primarily to rising costs. Labor costs are also rising for organizers, which is also due to the fact that consumers or customers are willing to pay that price,” Dufek explained. He drew a parallel to hotels and restaurants, where price increases have been ongoing since the start of the pandemic.

Broader Economic Context

The Czech National Bank (ČNB) expects headline inflation to be 2.6% in 2026, similar to 2025. However, the diverging trends in goods and services inflation suggest that achieving this target may require continued monitoring of the services sector. The Czech economy experienced economic growth of 2.4% in the fourth quarter of 2025, and the policy rate currently stands at 3.50% as of January 2026. The unemployment rate remains low, at 3.00% in December 2025.

The continued rise in service prices, despite moderating overall inflation, presents a challenge for policymakers and consumers alike. While the decline in energy prices offers some relief, the underlying pressures in the services sector suggest that the path to the ČNB’s 2% inflation target may be more gradual than initially anticipated.