Prime Minister Petr Fiala of the Czech Republic recently discovered a well-known fact among thousands of Czech consumers – identical products from the same producers are inexplicably more expensive in the Czech Republic. To investigate this issue firsthand, Fiala conducted a price comparison experiment, which unveiled striking disparities in product pricing between the Czech Republic and Germany, with the Czech market consistently reflecting higher prices.

Lower food prices, especially in border regions, have long enticed Czech consumers to shop in neighboring countries like Poland and Germany, where products are perceived as more affordable. Fiala’s decision to investigate these disparities was influenced by this common consumer practice.

For his comparative shopping experiment, Fiala visited the German town of Waldsassen, located adjacent to Cheb in the Czech Republic. He selected nine items, including staple goods such as milk, butter, bread, chocolate, ketchup, Nutella, and Coca-Cola. The total cost for these items in Germany amounted to just under 20 Euros, equivalent to roughly 500 Czech koruna.

Upon returning to Cheb and purchasing the same products, Fiala was surprised to discover that the identical items were priced more than 60 koruna higher in the Czech Republic. While some grocery items exhibited only marginal variations in cost between the two countries, others, like butter, were more than a third cheaper in Germany.

Notably, Fiala observed significant pricing discrepancies in the case of Nutella. In the Czech Republic, Nutella was priced at 169.90 Kč, while the same product in Germany cost just 113.30 Kč. However, the Czech packaging contained 600 grams, whereas the German version contained 750 grams. This packaging difference effectively renders the price of Nutella in the Czech Republic nearly double that of Germany.

Similar pricing disparities were found with Coca-Cola, where a bottle was priced at 36.80 Kč in Germany for 1.25 liters, while a liter bottle in the Czech Republic was priced at 32.90 Kč.

Despite the assertions of manufacturers and sellers that their profit margins are reasonable, the Czech market maintains notably higher prices when compared to the purchasing power of German consumers. Following his price comparison experiment, Prime Minister Fiala reiterated the government’s commitment to conducting checks and exerting pressure on producers and sellers, as it lacks the authority to directly influence price formation. He has called for a “public explanation” from manufacturers, particularly international companies, to address these pricing discrepancies and provide clarity to Czech consumers.

Article by Prague Forum