The price of eggs has doubled in the past four years, and the same trend applies to butter, bread, and potatoes. Consumers and economists alike were caught off guard when food prices spiked again this January.
From December to January alone, retail food prices in the Czech Republic increased by 3%, the highest in Europe. Bulgaria followed with a 2.5% rise. Compared to January 2024, Czechs—alongside Poles, Hungarians, Romanians, and Bulgarians—are now paying 5% more for food.
While some products have seen price reductions, the most significant increases over the past year have affected essentials like eggs, fruit, milk, butter, chocolate, and poultry. These items make up a large part of the consumer basket. Analyst Petr Havel had previously warned of rising agricultural prices, pointing out that the factors driving costs up outweighed those pushing them down.
A key reason behind these price hikes is the Czech Republic’s position as one of the EU countries with lower overall price levels. As part of economic leveling within the EU, labor costs are rising faster here than in many other nations, significantly influencing food prices.
This pattern was already evident in the major food price surge of 2022-2023, when poorer Eastern European countries experienced the sharpest increases. A similar trend is expected this year.
“At the same time, we have some of the highest energy prices and the highest VAT on food in the entire region,” says an analyst.
Although the Czech government reduced VAT on most food items from 15% to 12% last year, this remains higher than in neighboring Slovakia, where Prime Minister Robert Fico has announced a further cut from 10% to 5%.
Various factors contribute to price increases for specific foods. Milk prices continue to rise as cattle populations decline across Central Europe. Butter is becoming more expensive due to lower milk fat content in winter.
“In general, sustainability measures and the ‘Green Deal’ have the greatest impact on livestock farming,” explains Petr Havel. New regulations require livestock farmers to invest more in animal welfare measures, increasing production costs.
Poultry farmers face even steeper costs as they transition from cages to covered enclosures, a change estimated to cost Czech poultry farms four billion crowns—an expense ultimately passed on to consumers. Additionally, the spread of bird flu from the Americas has further driven up egg prices.
The Green Deal’s fair trade regulations, which ensure African and Latin American farmers receive fair prices while preventing deforestation, have also raised cocoa prices, making chocolate more expensive.
Meanwhile, poultry demand has surged as Czechs move away from beef and pork in favor of cheaper alternatives. However, at the start of the year, poultry farmers in Poland and Lithuania hit their production limits, tightening supply.
Czechs, who consume the most apples in Europe, are also feeling the effects of last April’s frosts, which severely damaged fruit harvests and contributed to rising prices.
With multiple factors at play, Czech consumers are bracing for continued food price hikes in 2025.
