Prices of food are expected to rise by around 10 percent next year, the
novinky.cz news site reported on Sunday, citing Czech producers and
traders. According to the president of the Czech Confederation of Commerce
and Tourism Zdeněk Juračka, the price increase will be caused by a
weakening crown, a VAT hike, growing commodity prices on foreign markets
and rising costs of transport and energy. A spokeswoman for the Czech
Federation of the Food and Drink Industries said higher prices might
affect
local production as consumers might travel to countries with a lower VAT.
Producers have warned pressure on lower prices might lead to a decline in
quality. According to the Czech Statistical Office Czechs consumed less
meat, milk products, fruit and vegetables as well as alcohol and
cigarettes
last year. Producers say they believe the trend has continued in 2011.