Photo: website of ODS
(www.vlada.cz) Consumer price growth slowed significantly to 2.3 percent in January from 6.9 percent in December. The data were announced on Thursday, 15 February 2024 by the Czech Statistical Office. At a press briefing, Prime Minister Petr Fiala said that not only the government's pressure on producers and traders, but also the consolidation of public finances contributed to the decline in inflation. According to him, the uncertainty about the future as well as the two-year stress of price hikes is coming to an end.
"What I promised the citizens in my Christmas speech, when I said that the economic situation of people and companies would improve, is being confirmed. This is really good news. Food has become almost four per cent cheaper year-on-year, low inflation also means that credit will become cheaper this year, this will help people, businesses and the economy as a whole again. It ends the uncertainty about the future and it ends the two-year stress of price rises that people and businesses have been under," He said Petr Fiala.
The Prime Minister also said that the government expects real wages to rise, which is one of the things that people themselves will directly feel on their budgets. The Prime Minister also admitted that the path to the lowest inflation since March 2021 has not been easy.
"Inflation of 2.3 % is almost a third of what our government took over in December 2021 after the government of Andrej Babiš, when inflation was 6.6 %. Indeed, this report implies an optimistic outlook to 2024," said the Prime Minister Petr Fiala.
In his statement, the Prime Minister expressed his appreciation and thanks to all those who had contributed to the gradual decline in inflation in the Czech Republic. Inflation is influenced by several factors, but he mentioned several important steps that the current government has helped to reduce inflation, which have not always been popular.
"The main thing we had to do was to restore public finances. We cut state budget spending by almost CZK 100 billion in 2022. First of all, it was a consolidation package that cuts unnecessary spending, but it also cuts VAT on some key items, like food." added the Prime Minister Fiala noting that a very important thing that has had a positive effect is the reduction in energy prices.
"These figures are really hopeful for the whole of this year and citizens have real evidence that things are improving," concluded the Prime Minister Petr Fiala.
ods.cz/gnews.cz-JaV_07
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