This photo taken on Dec 16, 2022 shows a Christmas market at the Old Town Square in Prague, Czech Republic. Photo:Xinhua

Czech storage worker Jan Knytl says he likes giving more than receiving. He would like to buy Christmas presents for all his loved ones, but this year this is something he can hardly afford.

"Unfortunately, this year my economic situation isn't where I'd like it to be," Knytl, 21, told Xinhua. "I won't be able to get the gifts that I'd like for my friends and family. I think that here in the Czech Republic, and maybe in most other countries, prices are getting out of control."

A recent Ipsos poll conducted in the Czech Republic found that two-thirds of the public will have to cut back on their holiday spending as a result of the "economic situation." Almost 90 percent of the respondents said they planned to spend less - or the same amount -- on gifts than last year.

The Central European country has been hit particularly hard by the price hikes, as the economies across Europe reel from the effects of the conflict in Ukraine and the West's sanctions on Russia. Year-on-year inflation in the Czech Republic reached 16.2 percent in November.

Self-employed software engineer Jakub Kaspar said that inflation is hitting him a bit harder this year. "I will probably spend the same amount of money during the holidays as last year. But overall, because of inflation, I have to think twice before buying things, especially online," he said.

"I will carefully consider whether I actually need or want the things I'm thinking of buying. That is how I can and will save money. The economy in general is going downhill - this is the message I get from my stock market investments."

Sergey Bogodelov, a father of two children, said that he, too, will have to be careful with his spending as prices are skyrocketing.

"I plan to spend about 200 euros (212 U.S. dollars) between my girlfriend and two kids," he said.

Film set worker Milan Stano, who has seen his personal financial situation improve this year because he changed jobs, told Xinhua that he plans to spend about the same amount this Christmas as last year -- between 15,000 and 20,000 Czech crowns - on gifts and other things.

"Inflation in the Czech Republic is high compared to previous years. Even basic necessities and services have become more expensive. Fortunately, I'm not really feeling a lot of this because my income has increased since last year, but I can see that a lot of people are suffering as a result," Stano said.

The Czech National Bank (CNB) said earlier this week that inflation is still well above its tolerance threshold and year-on-year price growth will continue to fluctuate in the coming months. The bank expects inflation to slow to single-digit by the middle of next year.

The Ministry of Finance has predicted that the Czech economy would grow by 2.4 percent this year and contract by 0.2 percent in 2023. Households will continue to face the impact of high inflation next year, it added.

People visit a Christmas market at the Old Town Square in Prague, Czech Republic, Dec 16, 2022. Photo:Xinhua

People visit a Christmas market at the Old Town Square in Prague, Czech Republic, Dec 16, 2022. TO GO WITH "Feature: Czechs cut back on Christmas as inflation bites" Photo:Xinhua

People visit a Christmas market in downtown Prague, Czech Republic, Dec 16, 2022. Photo:Xinhua

This photo taken on Dec 16, 2022 shows a Christmas market at the Old Town Square in Prague, Czech Republic.Photo:Xinhua