- Hans Weber
- December 4, 2023
Consumers Benefit as Farmers and Producers Cut Food Prices in Czech Republic
Prague, Czech Republic – [Date] – Czech consumers have witnessed a welcome decline in the prices of various supermarket food items, thanks to efforts by farmers and food producers to initiate price cuts. Retail chains have pledged to continue passing on these reduced supplier prices, offering some relief to consumers. This trend has been further fueled by a decrease in consumer spending and price pressure when importing goods from abroad, particularly from neighboring Poland.
“In August, the most significant reductions in promotional prices were observed in oils, butters, and milk. Prices were also lower for items like zucchini, snakehead cucumbers, chicken, and turkey. Various types of cheese and other dairy products were also available at lower prices,” reported Zlata Vašíčková from Kupi.cz during an interview with Právo.
She noted that specific items like Pilos butter at Lidl, Barilla pasta at Billa, and Pilos milk again at Lidl, were now priced at half of what they were last year. For instance, a liter of long-life milk that was sold for CZK 19.90 a year ago now costs CZK 10.90. Chicken cutlets have dropped from CZK 168 to CZK 129 per kilo. Most of the mentioned promotional prices decreased by approximately 20 percent.
Following last year’s record-breaking 20 percent inflation in food prices, this year has seen moderation due to declining input costs and decreased consumer demand. Consumers have started saving more and actively seeking discounts due to the decrease in real prices. This trend is not unique to the Czech Republic and is affecting other European countries, including neighboring Germany.
However, it’s worth noting that not all food items have seen price reductions. Statistics reveal that certain items like potatoes, apples, and bottled beer have become more expensive year-on-year. These increases are generally relatively minor.
While the price of fresh food in the consumer basket has dropped by about three percent in August compared to June and July, there are variations between stores. For instance, Alberto experienced a four percent decrease in the price of the consumer basket, while Globus witnessed a four percent increase.
Retailers have emphasized their commitment to providing competitive prices. Jiří Mareček, a spokesman for Alberto, stated that disclosing specific price changes for individual items is prohibited due to regulations. However, he emphasized that they negotiate with suppliers to lower prices and pass those savings on to consumers.
Renata Maierl, a spokesperson for Kaufland, noted that hundreds of products have become more affordable in recent weeks, especially when the cost of raw materials decreases.
Import pressure, particularly from Poland, is one of the factors influencing discounts and promotions on food items in Czech stores. Additionally, seasonality plays a role as consumers allocate their spending towards other areas, such as school supplies, during certain times of the year. Overall, this trend brings some relief to consumers grappling with rising living costs.
Article by Prague Forum