Despite being in season, the prices of vegetables remain high. In some stores, a kilogram of potatoes is sold for 30 crowns, while tomatoes are sold for 70 crowns. According to statisticians, potatoes have increased in price by an average of 60% and tomatoes by 45% year-on-year.
Overall, food prices increased by a tenth last month compared to last year. Although this marks a slower rate of increase compared to previous months, customers are still not rejoicing.
The only items that saw prices decrease compared to last year were a few items, such as butter and pork, which are now increasing in price again.
In addition to potatoes and tomatoes, the prices of onions and peppers have skyrocketed in the past few months and, unfortunately, have not decreased much, even with the onset of the season in July. Vegetables and eggs have increased in price by about a third compared to last year. However, food prices did decrease by 0.8% compared to June.
Comparison of average food prices
| Item | July 2023 | July 2022 | Change |
|---|---|---|---|
| Tomatoes | 65.58 Kč | 45.34 Kč | +45% |
| Potatoes | 24.73 Kč | 15.41 Kč | +60% |
| Bread | 44.63 Kč | 40.13 Kč | +11% |
| Milk | 24.15 Kč | 22.16 Kč | +9% |
| Eggs (10 pieces) | 45.45 Kč | 33.66 Kč | +35% |
| Butter (kg) | 157.09 Kč | 215.88 Kč | -27% |
According to agricultural analyst Petr Havel, fruit and vegetable prices typically decrease more during this period.
“However, this year’s season is marked by unfavorable weather, especially in southern Europe or northern Africa, which certainly affects and has already affected the reduced production supply from these countries, and indirectly affects prices in our market,” he told Pravo. This also applies to potatoes.
Bread, milk, and cheeses did decrease in price compared to June. However, the cost of pork will continue to increase.
“The German stock exchange determines the price of pork. The price there rises by a few cents every day. It may not seem like it, but it is a problem,” warned Dana Vecerova, president of the Czech Chamber of Commerce. According to her, this is due to the reduction in livestock after COVID-19 in Germany or Spain, and of course, in the Czech Republic.
Despite the slowdown, inflation in the Czech Republic remains high. It is four times higher than the inflation target of the Czech National Bank, which would like to have around two percent. Looking back two years ago, the price increase in the Czech Republic is enormous. In July last year, the annual inflation rate was 17.5%. Therefore, the price level has increased by more than 26% in two years.
Despite the slowdown, inflation in the Czech Republic remains high. It is four times higher than the inflation target of the Czech National Bank, which would like to have around two percent. Looking back two years ago, the price increase in the Czech Republic is enormous. In July last year, the annual inflation rate was 17.5%. Therefore, the price level has increased by more than 26% in two years.
Inflation in the Czech Republic is among the highest in Europe, according to investment platform Portu. The highest is in Hungary – 17.6%. Other neighboring countries had higher inflation rates in July – Slovakia 10.9%, and Poland only one-tenth of a point lower.
Austria is doing better, with a 7% inflation rate. Germany reports 6.2%, and the United States announced a drop to three percent yesterday.
“Overall, consumer price growth should continue to decline in the rest of the third quarter, but fuel prices will have a disturbing effect in August due to the transient increase in the fuel tax from the reduced level,” warned Radomir Jac, chief economist of Generali Investments CEE.