Czechia’s Frightening Increase in Food Prices

Czechia may produce much of its own food, but that has not stopped the country from seeing a dramatic increase in food prices. On top of the usual suspects such as rising energy prices, part of the problem for Czechs is that a substantial amount of domestically produced food is exported abroad. Food prices rose by more than a quarter in the Czech Republic in October. This was not only due to soaring energy prices but also partly because Czech stores copy prices in Germany, which has also seen an explosive growth in food prices this year. The data shows just how bad food inflation in Czechia has become. The country experienced the largest percentage rise in sugar prices in Europe; the second-largest in vegetable oils; and the third-largest price increase in butter, milk, and bread. Part of the problem is that Czech producers continued to export many of these commodities abroad, creating a shortage at home and keeping prices high. The situation the country finds itself in reveals some of the downsides of free trade and globalization, in which companies and producers can often profit more by selling key products abroad rather than selling domestically. The increase in the price of sugar … Continue reading Czechia’s Frightening Increase in Food Prices