Czechia faces rising inflation, slowing growth risks amid Iran war

The Czech Republic is faced with rising inflation and slowing economic growth risks amid the stalled US-Israeli war against Iran, Czech Radio reported on Saturday.

As the Iran war push up goods and services prices in Czechia, analysts warned that the country could experience a sharp rise in inflation and slowing economic growth as long as the conflict continues.

If the war persists, economists say growth could slow to around 1.5% after the economy expanded 2.1% year-on-year in the first quarter. Meanwhile, consumer price inflation is projected to accelerate to at least 3% from the current 2%.

Besides rising petrol and diesel prices despite price caps, higher costs have already forced firms to cut back on investment.

There are also concerns over renewed weakness in the German economy as much of Czech industry depends on it.