"The food and non-alcoholic beverages exceeded 20 percent between mid-2022 and early 2023 because of Russia’s full-scale invasion of Ukraine. So, when we talk about the annual decline of foodstuff prices, we talk about a decline from the extremely elevated prices from the beginning of 2023," states Vladimír Vaňo, Chief Economist at GLOBSEC who was interviewed by RadioPrague.

Secondly, we also have to consider the change in the Value Added Tax (VAT), which came into force since January 2024.

Thirdly, Mr. Vaňo argues that Czech consumers are unique in their price sensitivity even in relation to volatile products, such as food products.

Here is another statement form the export from the field. According to Petr Dufek, Chief Economist at Creditas, the development of food prices will depend on the harvest. “If it is favourable, fears of food prices will probably prove false,” he said. However, problems could arise with fruit, which will not be in abundance this year due to the weather.

Source: RadioPrague