The high price of foodstuffs has been a major woe for Czech consumers in the past two years. And there seems to be no light at the end of the tunnel. In spite of a decrease in the VAT rate on food from 15 to 12 percent in January, retail chains have announced further price rises next year.
Two-digit inflation in 2022 made Czech consumers think twice about what they were putting in their shopping carts. According to statistics from that year Czechs were buying less food, and eating less dairy products, meat, eggs, fruit and vegetables. On the other hand they were consuming more bread, rice and lentils. The change in eating habits is ascribed to falling real wages and growing food costs.
Although inflation was, to some extent, brought under control, and the government’s tax amendment will see food products moved from the present 15 percent VAT rate to 12 percent in January of 2024, any hopes that this would be reflected in food prices on the market have been dashed.
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