Food Prices Fall: A Closer Look at the Czech Market

In recent developments, most food prices in the Czech Republic fell in February. According to data from the Czech Statistical Office (ČSÚ) for the second week of February, this was noted in month-to-month and year-to-year comparisons. Compared to the same month last year, food prices this year were significantly lower, albeit slightly less so every month. For instance, a box of ten eggs costs 46.34 Koruna, 26.02 percent less than it cost in February last year. However, bottled beer, apples, and potatoes prices increased yearly and monthly.

These findings are based on regular monthly surveys conducted by the ČSÚ. The prices are determined once in the field and do not feed into the calculation of monthly consumer prices. In February, eight of the 13 items monitored saw a price reduction. For instance, a kilogram of wheat flour costs 20.40 koruna. The most significant drop compared to January was the price of a kilogram of butter, which fell by 5.54 percent to 196.50 Koruna.

On the other hand, the price of half a liter of light beer increased by 4.32 percent to 15.23 Koruna, a kilogram of potatoes by a quarter percent to 27.77 Koruna, and a kilogram of apples slightly increased to 37.42 Koruna, or by 0.73 percent. Nine out of 13 items saw a year-over-year price decrease in February. For example, a kilogram of granulated sugar fell by 15.59 percent to 28.74 Koruna, and a kilogram of butter was 15.09 percent cheaper, costing 196.50 Koruna.

The annual increase in consumer prices in January slowed significantly to 2.3 percent from 6.9 percent in December. According to statisticians, housing prices were a significant factor in the slowdown of year-on-year inflation. The year-on-year cheapening of non-alcoholic beverages and food continued. Consumer prices in January rose by 1.5 percent every month. From the beginning of this year, food was reclassified into a lower VAT rate of 12 percent.