High Prices in the Czech Republic: Why Are Goods More Expensive Than in Neighboring Countries?

Products in the Czech Republic are noticeably more expensive than in neighboring countries, even recognized by Prime Minister Petr Fiala. If you plan on buying a bed, you’ll find that identical items in Czech IKEA stores cost almost four thousand crowns more than in Slovakia. Mouthwash in Poland is also more than twice as cheap, a trend that extends to other drugstore items.

IKEA, a leading furniture retailer in the Czech Republic, has lowered its prices twice since August, yet it remains more expensive than its counterparts abroad. For instance, the popular Idanäs bed costs 15,990 crowns in a Czech store, but the exact mattress costs just 12,210 crowns in Slovakia after conversion. IKEA’s popular Hemnes sofa bed, which has recently seen a significant price drop, is still nearly two thousand crowns cheaper in Slovakia.

The price disparity is not limited to furniture. Food prices in IKEA are also higher in the Czech Republic. The famous meatballs, for example, cost 249 crowns per kilogram in Czech stores, while the exact product costs just 220 crowns in Germany after conversion.

The lack of serious competition is a significant reason for the high” prices. “It makes no sense because Czechs have lower incomes than”Germans,” said Štěpán Křeček, Chief Economist at BH Securities, in an interview. According to him, stores can afford to mark up prices because they can still sell their goods due to the lack of alternatives.

In conclusion, the Czech market is facing a severe issue of high prices of goods compared to neighboring countries. While consumers have adapted by shopping abroad, it remains to be seen whether this trend will lead to a price reduction in the future. Until then, Czech consumers will bear the brunt of these high prices.