Czech Prime Minister Petr Fiala has reassured the public that his government is capable of handling the rising food prices in the country. He believes that a wise economic policy combined with the use of state instruments and letting the free market function will help manage the issue, as it has been successful in coping with fuel and energy prices in the past year. The opposition has criticized the coalition cabinet for the escalating food prices, and is attempting to put the issue on the lower house’s agenda.

Fiala has stated that the Czech agriculture and food sectors are different from those in neighbouring countries because the market is controlled by big players with market shares bordering on monopolies. He has urged the government to apply certain pressure and control in the market to encourage individual players to start competing with each other, which should lead to a decline in food prices.

The opposition and some experts believe that the government should apply the law on prices, which contains instruments to fix prices, to tackle the issue of rising food prices. However, Fiala and his government have stated that interfering with the free market through price fixing or lifting the VAT on food would not help and would only result in a shortage of food.

Agriculture Minister Zdenek Nekula has previously sent letters to retail chains requesting an explanation for the sudden surge in sugar and egg prices, and filed complaints with the anti-trust office about the retail prices of sugar and eggs. He has also addressed the UOHS about the prices of eggs and sugar. Nekula believes that prices have started falling due to the pressure exerted by state bodies, media, and consumers.

In conclusion, the rising food prices in the Czech Republic are a significant issue that the government is working to address. The coalition cabinet is confident that its policy of applying pressure to the market and letting the free market function while using state instruments will help manage the situation. The opposition and some experts believe that the government should intervene through price fixing or lifting the VAT on food, but the government disagrees, stating that it would only result in a food shortage. Agriculture Minister Zdenek Nekula is working to address the issue by putting pressure on retail chains and the market to decrease prices.

Article by Prague Forum