Czech Republic: The record potato harvest in Germany also helped reduce inflation in the Czech Republic
Unexpected price cuts in food, especially potatoes and vegetables, are keeping Czech inflation surprisingly low, the Statistical Office said today.

The main reason for the unexpectedly weak price increase is the month-on-month decrease in food prices by 0.6 percent. The opposite development was widely expected. Food prices were pulled down by a decrease in vegetable prices, by almost four percent month-on-month, while potato prices fell by as much as nine percent. This year, the potato harvest is promising . In Germany, which is the largest importer of potatoes to the Czech Republic, they are expecting their highest harvest in the last 25 years, which is pushing down the price of potatoes in the Czech Republic as well, where this year’s harvest will also be good, even very good.
Norway is known for its expensive food. Prices are noticeably higher there, even compared to neighboring countries. Recent information suggests that the market has been divided up by large retail chains, who have played with prices.
The increase in the price of potatoes in the Czech Republic as a result of the Russian invasion of Ukraine has led Czech farmers to increase their cultivation . The associated gradual increase in the supply of potatoes on the market is now pushing the price down. Nevertheless, the Czech Republic is only about 65 percent self-sufficient in potatoes, so the exceptionally good harvest in the country of the largest importer, Germany, is also having a positive impact on prices. In Germany, potato prices in stores in August fell by as much as fifteen percent year-on-year. Vegetables in the Czech Republic were even 7.8 percent cheaper in September year-on-year.
Overall inflation in the Czech Republic should continue to decline in the rest of the year, approaching the CNB’s two percent target, due to the favorable development of food prices, which also reflects the effect of a higher base for year-on-year comparison . Without this year’s increase in excise taxes on alcohol and tobacco, it would have practically reached the two percent level in September.
Fuente: Traducido por Argenpapa de: newstream.cz