- Hans Weber
- December 1, 2023
Consumers in Czech Republic Witness Decline in Food Prices as Farmers and Producers Cut Costs
Consumers in the Czech Republic have recently experienced a decline in the prices of numerous supermarket food items, thanks in part to price cuts initiated by farmers and food producers. Retail chains have pledged to continue passing on the reduced supplier prices. The trend of falling food prices can also be attributed to a decrease in consumer willingness to spend and price pressure when importing goods from abroad, particularly from Poland.
In August, the most significant reductions in promotional prices were observed in oils, butters, and milk, as well as items like zucchini, snakehead cucumbers, chicken, and turkey. Various types of cheese and other dairy products were also available at lower prices. Some specific items, like Pilos butter at Lidl, Barilla pasta at Billa, and Pilos milk again at Lidl, were sold for half of their prices compared to the previous year. For instance, a liter of long-life milk that was sold for CZK 19.90 a year ago now costs CZK 10.90, and 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. People have started saving more and seeking discounts due to the decrease in real prices. This phenomenon is also affecting other European countries, including neighboring Germany.
However, not all food items have become cheaper; some, like potatoes, apples, and bottled beer, have become more expensive year-on-year. On average, the decline in the price of fresh food in the consumer basket was about three percent in August compared to June and July.
Retailers are responding to the changing market conditions by continuously reducing product prices when the cost of raw materials decreases. They negotiate with suppliers to lower prices and pass those savings on to consumers. Import pressure, especially from Poland, is also influencing discounts and promotions on food items in stores.
While prices have declined for many food items, experts suggest that further significant reductions may be limited as other costs, such as fuel, packaging, and waste, remain unchanged or even increase for food producers.
In summary, consumers in the Czech Republic are benefiting from lower food prices, with retail chains pledging to continue passing on reduced supplier prices, thanks to price cuts initiated by farmers and producers, decreased consumer demand, and import pressure from countries like Poland.
Article by Prague Forum