Food prices may continue falling for several more months, analysts estimate

Food prices in the Czech Republic may continue to decline for several more months. Analysts expect this based on developments in producer prices published today by the Czech Statistical Office (ČSÚ).

By contrast, inflationary pressures in the industrial sector are intensifying, experts say, as the impact of higher raw-material costs resulting from conflicts in the Middle East begins to make itself felt more strongly.

Experts expect the trend of falling food prices to come to an end during the winter. “The effect of excess supply will eventually run its course. Farmers will adapt, and the strong downward pressure on prices will naturally disappear. The only question is when, because everyone is facing rising costs for energy, fertilizers, animal feed, and other inputs,” Dufek said.