The meeting between Agriculture Minister Marek Výborný and food retail chains has sparked discontent among opposition parties and the ruling Pirates and STAN, as retailers indicate their intention to raise food prices next year. Despite promises made during the meeting, the decision to increase prices has triggered concerns and calls for intervention.

The Ministry of Finance sees no justification for the planned increase in food prices, especially given the government’s recent reduction of VAT on food from 15 to 12 percent as part of the consolidation package. Ministry spokesperson Petr Habáň emphasizes that the reduction in VAT was intended to address high prices, and the expectation is that this reduction should be reflected in the final prices for consumers.

Chairman of the Pirates, Jakub Michálek, attributes the situation to the perceived insufficient activity of the antimonopoly office. While retail chains cite factors such as rising energy prices, increased transportation costs due to tolls, and growing wage costs as reasons for the price hike, politicians express skepticism and call for scrutiny.

STAN MP Ondřej Lochman, advocating for a revision of the law governing the antimonopoly office, concurs with Michálek. Lochman asserts that a monopolized market, from raw materials to sale, contributes to the high food prices. Similarly, Deputy Chairman of STAN Lukáš Vlček expresses frustration with the retail chains’ stance and encourages Czech consumers to prioritize buying meat, dairy products, vegetables, and bread from local producers.

In response to the situation, the government is expected to address the issue, with politicians emphasizing the importance of fair pricing practices and the need to protect consumers from unjustified increases in the cost of essential goods.

Article by Prague Forum