Real wages in the Czech Republic rise by 4.3%: Consumer confidence falls by 3.3 points

The average wage in the Czech Republic rose to 51,966 korunas in the second quarter of 2026. The Czech Statistical Office (ČSÚ) reported on Thursday a nominal increase of 6.4% compared with the same quarter of the previous year. After adjusting for inflation, the increase was 4.3%. Consumer prices rose by 2% during the same period.

“Real wages rose by 4.3% in the second quarter,” said Jitka Erhartová, head of the Labor Statistics Department at ČSÚ. This rate corresponds to the figure for the entire first half of the year.

The ČSÚ does not currently report the median wage. The data source for the modeling ended with the reference year 2025. Analysts therefore lack insight into the middle of the wage distribution.

The purchasing power of Czech households is thus growing noticeably. So far, the retail sector has felt the impact more than consumer sentiment surveys suggest.

Retail is growing, while online retail is pulling ahead

Retail sales, excluding motor vehicles, rose by 3.6% in real terms in June compared with the same month last year. Compared to May, they fell by 0.1%. Food sales posted a 2.1% increase. Mail-order and online retail made the largest contribution: their sales jumped by 12.6%. The Statistical Office will release the July figures this Friday.

The economy as a whole also relies on consumer spending. Gross domestic product grew by 1.9% year-over-year in the second quarter. Compared with the previous quarter, it rose by 0.4%. The Czech Statistical Office (ČSÚ) cites higher household consumption spending and fixed capital investment as the drivers. Inventory drawdowns acted as a drag.

Consumer confidence is waning

Nevertheless, sentiment is shifting. The consumer confidence indicator fell by 3.3 points to 102.3 in August. The overall economic sentiment indicator declined by 0.6 points to 100.5. Business confidence remained unchanged at 100.2.

Prices continue to support households. The consumer price index was 1.7% higher in July than in the same month a year earlier. Agricultural producer prices fell by 13.0%. Industrial producer prices rose by 1.6%, while prices for market services increased by 2.8%.

For German exporters, the gap between income and sentiment is key. Real wages growing by more than 4% create room for consumer goods, household appliances, and vehicles. A confidence indicator that loses three points postpones purchases. Those who ship to the Czech Republic should factor in the online channel. It is growing more than three times as fast as the retail sector as a whole. Price promotions take effect there more quickly than in brick-and-mortar stores.

Sources: Český statistický úřad, Quick Facts on wages, retail, business surveys, consumer prices, and GDP (CS/EN).

SK, Frankfurt