Amidst the economic challenges posed by inflation and declining real incomes, Czech households are exhibiting resilience and adapting to the financial landscape through strategic shopping habits and an increasing tendency to seek out cost-effective grocery options abroad.

According to a survey conducted by KRUK Czech and Slovak Republic, there is a notable shift in consumer behavior, with over 38% of Czech families strategically managing monthly food expenses within the range of five to ten thousand crowns. A smaller fraction, less than a third, adheres to a budget between three and five thousand crowns, while only 19% of households allocate over ten thousand crowns to monthly food expenditures.

The survey findings also shed light on a correlation between education levels and food expenses, suggesting that higher education might be linked to increased income and a greater emphasis on purchasing quality food items. Jaroslava Palendalová, the director of the survey-conducting company, highlighted that a quarter of respondents reported restricting their purchases to basic food items, while 16% were compelled to opt for lower-quality food due to rising prices.

Despite the economic challenges, the survey indicates a slight improvement in the ability of Czech households with limited means to afford essential food items compared to the previous year. Last year, 28% of households could only afford basic food items, whereas this year, the figure has slightly decreased.

Factors contributing to the mitigation of food expenses include a marginal decrease in prices for certain food items, such as butter, milk, and sugar, which had experienced significant increases earlier in the year. According to the Czech Statistical Office, food and non-alcoholic beverages have become approximately two percent cheaper from January to October.

One noteworthy trend is the increasing reliance on discounts and promotional sales by Czech consumers, with more than half actively seeking opportunities to save on grocery expenses through discount actions. The survey suggests that women, particularly those on maternity and parental leave, are more inclined to utilize these savings strategies.

Additionally, an interesting development is the rise in the number of Czechs traveling abroad for more affordable groceries. The survey indicates a year-on-year increase, with 14% of respondents opting to shop abroad compared to 10% in the previous year. This trend is particularly pronounced among individuals aged 45 to 54 and those employed in the financial and insurance sectors, reflecting a diversified approach adopted by Czech households to navigate the economic challenges posed by inflation.

Article by Prague Forum