Food prices in the Czech Republic are projected to rise more quickly in the coming months due to an increase in agricultural producer prices, analysts predict.
The Czech Statistical Office (ČSÚ) recently released data showing agricultural producer prices rose by 2.4% year-on-year in October, the first increase after 17 months of declines.
“The period of price decreases in agriculture has ended for now, which had previously been confirmed by the development of meat prices. Now, the downward trend is stopping for plant-based products as well. Consequently, food producer prices have started to rise, and retail prices are following suit,” said Petr Dufek, Chief Economist at Banka Creditas.
Radomír Jáč, Chief Economist at Generali Investments CEE, also pointed to the expected rise in food prices. “The price development in the food industry supports the expectation that the year-on-year increase in food prices for final consumers will continue, with a slight acceleration towards the end of this year. In general, the expectations are that food prices will be one of the key drivers of overall inflation in the Czech economy by the end of this year,” he said.
Despite these developments, industrial and construction prices are showing relatively weak growth. “Construction prices are growing at a slower pace than overall inflation. Consumer prices increased by 2.8 percent year-on-year in October, while the prices of materials and products consumed in construction rose by only 0.8 percent, and construction work prices increased by 2.3 percent.
