The aim of the paper is to outline the development and the level of the demand-related inflation potential originating in the household sector in the Czech Republic. In order to achieve that, we will outline inflation types and their causes as reported by selected authors. We will also describe several ways of assessing and quantifying the demand-related inflation potential originating in the household sector, as published by the Czech National Bank. Furthermore, we will calculate the

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... of total potential demand-related inflation impulses from the household sector, whose development is to be compared with the household consumption deflator. The values of the overall relative income status of households will then be explained using their parallels for individual household income items. The quantification of the overall demand-related inflation potential from the household sector will then be carried out in the form of accumulating their values in terms of the localised periods of recession and boom in the GDP development in fixed prices. Keywords: Demand-related inflation potential from the household sector; overall relative household income status; relative household income status for individual household income components; overall real relative household income status JEL Classification: E24, E32, E37