Economist Barton explained high inflation in the Czech Republic by the lack of special relations with Russia
Natland Group Chief Economist Petr Barton said in an interview with Lidovky that commodity prices in the Czech Republic are growing faster than in almost all other countries European Union. His words lead RIA News.
According to the specialist, the Czech Republic does not have close relations with Russia, which other countries have. Therefore, high inflation is now recorded in the Czech Republic: its indicators have become record over the past 30 years.
“Hungary, whose economic indicators we use for comparison, maintains a special relationship with Russia, which means it has the opportunity to purchase energy at special prices, which slows down the overall inflation in the country,” the expert explained.
In April, the cost of production in the Czech Republic rose by 14.2 percent, one of the worst figures in the European Union. The most difficult situation is observed only in Lithuania (16.6 percent) and Estonia (19 percent).
“We haven’t seen anything like it for 30 years. Inflation significantly reduces the purchasing power of Czech households and can lead to the bankruptcy of many firms,” concluded economist Stepan Krshecek.
Creditas Chief Economist Petr Dufek stressed that inflation in the Czech Republic has two unique characteristics. According to him, it is accompanied by a sharp rise in the price of clothing and footwear, as well as housing and food. The increase in prices is difficult to compare with indicators in other EU countries, Dufek said.