May 22, 2024

Food Prices Rising Again: Which Items Are Most Affected

Food prices are still on the rise, with some vegetables increasing by up to ten percent.

Retailers seem to be reverting to their old pricing strategies after the VAT cut, says Trinity Bank’s chief economist Lukas Kovanda.

Another wave of price hikes is hitting the market. This trend is not only visible in food prices but is also impacting overall inflation.

“The main contributor to inflation in April was higher food prices. They rose by 1.7 percent, driven mainly by increases in pork, poultry, vegetables, dairy products, bakery items, and chocolate. Among alcoholic beverages, wine prices rose the most,” explained David Marek, chief economist at Deloitte and advisor to the president.

Data from the Czech Statistical Office shows rising prices for rice, flour, meat, and fish. While food items became cheaper early in the year due to a VAT reduction from 15 to 12 percent, many prices have since increased significantly.

From January to April, rice prices went up by 6.7 percent, flour by 6.9 percent, and salmon fillets by 4.5 percent. Soft curd saw an 8.8 percent rise, and lard jumped by 9.8 percent.

There were also notable price fluctuations in vegetables and fruits. Prices for lemons, carrots, and peppers surged, while grapes, tomatoes, cucumbers, and broccoli had the lowest increases.

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Headline inflation stands at 2.9 percent, within the Czech National Bank’s (CNB) tolerance band, yet consumer prices continue to climb.

“The unexpected inflation in April is mainly due to supermarket chains’ pricing strategies. After New Year, they kept food prices relatively low to show they had passed on the lower VAT. This lasted until Easter. Once the media and public pressure eased, they quietly raised prices,” explained Trinity Bank’s chief economist Lukas Kovanda to CNN Prima NEWS.

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