Economists agree that continued pressure on food prices is inevitable due to rising agricultural and food production costs. Compared to last year, producers have significantly increased prices for eggs, milk, and beef.
According to the Czech Statistical Office, agricultural producer prices increased by 13.4% year-on-year in June. Crop production saw price increases of 10.8%, with fruit prices jumping by 25%, oilseeds by 23%, and cereals by 15%. Animal production prices rose by 16.5%, with eggs seeing the most dramatic increase at 39%.
Trinity Bank economist Lukáš Kovanda explains that egg prices are being driven by supply constraints, as many European countries have been forced to cull poultry flocks due to bird flu outbreaks. In the Czech Republic, additional costs come from investments in more humane housing alternatives to battery cages. A pack of ten eggs now averages around 70 crowns in stores, though occasional promotional prices as low as three or four crowns per egg can be found.
BHS chief economist Štěpán Křeček predicts that consumers should brace for further food price increases, with meat products and dairy items facing the strongest upward pressure. Meanwhile, Citfin analyst Miroslav Novák offers a glimpse of hope, noting that while year-on-year agricultural prices are climbing significantly, they’ve declined month-on-month for the second consecutive month, suggesting some stabilization.
In contrast to the food sector, industrial producers have seen prices fall for five consecutive months, with a year-on-year decrease of 0.7% in June, primarily due to lower gas and electricity costs. Economists see no current justification for price increases in industrial goods.