No sharp price hike in foodstuffs registered over higher VAT rate

02-01-2012

No sharp increase has been registered in the prices of foodstuffs due to a higher VAT rate that came into force on January 1, the news agency ČTK reported on Monday. The lower VAT rate increased from 10 to 14 percent; however, most supermarket chains raised their prices gradually in the last weeks of 2011 to avoid a sharp increase in January. The head of the Czech Trade and Tourism Confederation said Czech retailers used a similar marketing strategy as their colleagues in Germany when the country adopted the euro.