Food became slightly cheaper, not for long

Cheaper bryndza, honey, apples, yoghurts and tomatoes. At least in appearance. Since the beginning of the new year, the value added tax on other foods has been reduced from 20 to 10 percent. This was enforced last year by nationalists. Fresh, ie unbaked, croissants also became healthy foods.

How much and whether people will feel a lower rate when shopping, depends mainly on what they buy. Otherwise, there will simply be a lover yogurts or apples like the one that prefers a chocolate bar.

For a healthy basket containing two liters of milk, ten croissants, four yogurts, sourdough, smaller honey, bryndza and a pound of apples so man will now pay about a euro less than last year. After the new strawberry Yogurt costs about 39 cents instead of 43 cents. Semi-skimmed milk fell from EUR 0.89 to EUR 0.79 per liter. 14 cents cheaper – for 1.59 euros, you can also buy a 250-gram package of flower honey. It’s not working by big differences and it is still true that more can be saved when buying goods in action.

“Reductions in value added tax on healthy food do not have to automatically mean a fall in their prices in the resulting inflation, “he says analyst at Wood & Company Eva Sadovská. Reach lower rate the development of food prices will also depend on the resulting share of healthy food on the total food basket. The result is according to Sadovska can only be a “slower rise in food prices”.

(Click on the image enlarge, open in a new window)

This year, Sadovská expects only almost half lower rising food prices than last year. And at the level of two percent.

Recently, VAT was reduced from 20 to 10 percent to the so-called basic food, which has been enforced by the one-color government of Smer since January 2016. At that time reduced tax on fresh bread, butter, cream, milk, freshwater fish, pork, lamb, beef, poultry and also goat meat.

The effect of the lower rate from January 2020 will be on the prices of selected foods dampen the rise in energy prices, petrol, but also the increase in the minimum wage. Right now from it are derived supplements for work at night, on a holiday or on one from weekend days.

“Reduction of value added tax for only about one to two years will stop the long-term trend of rising food prices, “estimates the company’s analyst Finlord.cz Boris Tomčiak. People will feel the most significant impact on prices in the first half of 2020. It will probably be gradual again at the end of the year return of average prices to the level before the 10% rate.

That from adjusting the VAT rate on selected foods you there is no need to promise a significant reduction in price, the chairman of the Slovak Alliance also confirmed of Modern Trade (SAMO) Martin Krajčovič.

“Since January 1, costs have risen sharply due to government intervention farmers, food producers and traders through a jump minimum wage, thus automatically also bonuses for work over the weekend, at night and on the holiday, if a significant increase in energy prices has to be added to this and other legal fees, ”he says. From the reduced rate you Krajčovič promises a maximum slowdown in price growth.

No applause

Originally, the CIS wanted to favor all healthy and homemade foods. Power cut from the state coffers, however, the coalition limit was exceeded. Nationalists so there was nothing left but a proposal to divide. The result is a compromise of 65 million eur. For example, not a carrot that would be dropped on the list was included in the list another six million euros.

The lower VAT rate comes less with fame this time than four years. Traders at the time announced the reduction of half a year through double price tags. They undertook to do so voluntarily through a memorandum on cheapening. In stores, people found two prices on goods – higher with a 20 percent rate and the lower of the 10 percent.

Now, however, traders have not made any major commitments. Double price tags so you will only find it in the stores of the Kaufland chain. “In order for the customer to see that prices have indeed been reduced due to the reduced VAT rate we use double price tags, “said the chain’s communications department. At the same time, Kaufland reduced the price of the tax reduction at the beginning of December last year. The prices of selected goods here reached the New Year’s Eve before the holidays level.

It became cheaper last year

Last year, prices were also cut in Lidl. People in December last year attracted prices for which they no longer had to wait for reduced VAT. Double however, they left out the price tags here this time. “Recalculating the price of a specific product according to the reduced VAT rate, it does not mathematically reduce the price by ten percent, “said Lidl spokesman Tomáš Bezák. Value added tax value is only one of the factors influencing sales prices products, he added.

Since the New Year, the Coop Jednota network has also received new awards. And without double price tags. Chief Director of the Sales Section of the Network Branislav Lellák price development he is not optimistic this year. “Pricing is complicated a process in which many factors enter – since January to increase the minimum wage, rising energy prices, bonuses for work on weekends and at night, ”he says. Energy prices, but also salary adjustments it bothers not only traders but also suppliers.

People will not see double price tags even when shopping in Tesco.

Lower VAT will only slow down price growth

No significant price jumps. This summarizes the impact of enlargement 10% value added tax (VAT) rate on fresh vegetables, fruit, sour milk products or fresh pastries. Raising price measures although it slows down slightly, but its effect is reduced due to more expensive energies, wage supplements for store employees or higher prices on agricultural exchanges.

So what will it look like with food prices this year? “VAT on selected Although food has been declining since January, on the other hand, several factors they will lead to higher costs in the food sector and push up prices food upwards, “points out the analyst of Poštová banka, Jana Glasová. He means not only the higher minimum wage from which they are derived also the amounts of surcharges for work at night, on holidays or on weekends, but also energy auction. Rising oil prices and agricultural products. We therefore expect that in the final settlement there will only be a slowdown in food price growth. “This year, inflation would could slightly slow its growth rate to 2.5 percent, “he estimates analyst.

Thus, prices should grow a little slower than last year, when they jumped by 2.7 percent. In December last year, inflation reached three percent. This was shown by the data of the Statistical Office of the Slovak Republic. Prices grew faster only in 2012. Last year, food prices rose significantly. In December they jumped by up to 5.2 percent year on year.

Under the current development of food prices, according to analyst UniCredit Bank Ľubomír Koršňák is still signed by the African swine fever. Dragees because of it mainly pork and products from it. This year, however according to him, the price increase will slow down the pace – food should only auction by more than two percent. However, the lower tax rate will not be signed under it of value added, but the economy. Her slowdown “will start to sign as well under a slight slowdown in the growth of prices of goods and services “, he explains Koršňák.

From the beginning of the new year, a reduced rate applies to selected healthy ones grocery store. They thus expanded the range approved in 2016.

Cheaper bryndza, honey, apples, yoghurts and tomatoes. At least in appearance. Since the beginning of the new year, the value added tax on other foods has been reduced from 20 to 10 percent. This was enforced last year by nationalists. Fresh, ie unbaked, croissants also became healthy foods.

How much and whether people will feel a lower rate when shopping, depends mainly on what they buy. Otherwise, there will simply be a lover yogurts or apples like the one that prefers a chocolate bar.

For a healthy basket containing two liters of milk, ten croissants, four yogurts, sourdough, smaller honey, bryndza and a pound of apples so man will now pay about a euro less than last year. After the new strawberry Yogurt costs about 39 cents instead of 43 cents. Semi-skimmed milk fell from EUR 0.89 to EUR 0.79 per liter. 14 cents cheaper – for 1.59 euros, you can also buy a 250-gram package of flower honey. It’s not working by big differences and it is still true that more can be saved when buying goods in action.

“Reductions in value added tax on healthy food do not have to automatically mean a fall in their prices in the resulting inflation, “he says analyst at Wood & Company Eva Sadovská. Reach lower rate the development of food prices will also depend on the resulting share of healthy food on the total food basket. The result is according to Sadovska can only be a “slower rise in food prices”.

(Click on the image enlarge, open in a new window)

This year, Sadovská expects only almost half lower rising food prices than last year. And at the level of two percent.

Recently, VAT was reduced from 20 to 10 percent to the so-called basic food, which has been enforced by the one-color government of Smer since January 2016. At that time reduced tax on fresh bread, butter, cream, milk, freshwater fish, pork, lamb, beef, poultry and also goat meat.

The effect of the lower rate from January 2020 will be on the prices of selected foods dampen the rise in energy prices, petrol, but also the increase in the minimum wage. Right now from it are derived supplements for work at night, on a holiday or on one from weekend days.

“Reduction of value added tax for only about one to two years will stop the long-term trend of rising food prices, “estimates the company’s analyst Finlord.cz Boris Tomčiak. People will feel the most significant impact on prices in the first half of 2020. It will probably be gradual again at the end of the year return of average prices to the level before the 10% rate.

That from adjusting the VAT rate on selected foods you there is no need to promise a significant reduction in price, the chairman of the Slovak Alliance also confirmed of Modern Trade (SAMO) Martin Krajčovič.

“Since January 1, costs have risen sharply due to government intervention farmers, food producers and traders through a jump minimum wage, thus automatically also bonuses for work over the weekend, at night and on the holiday, if a significant increase in energy prices has to be added to this and other legal fees, ”he says. From the reduced rate you Krajčovič promises a maximum slowdown in price growth.

No applause

Originally, the CIS wanted to favor all healthy and homemade foods. Power cut from the state coffers, however, the coalition limit was exceeded. Nationalists so there was nothing left but a proposal to divide. The result is a compromise of 65 million eur. For example, not a carrot that would be dropped on the list was included in the list another six million euros.

The lower VAT rate comes less with fame this time than four years. Traders at the time announced the reduction of half a year through double price tags. They undertook to do so voluntarily through a memorandum on cheapening. In stores, people found two prices on goods – higher with a 20 percent rate and the lower of the 10 percent.

Now, however, traders have not made any major commitments. Double price tags so you will only find it in the stores of the Kaufland chain. “In order for the customer to see that prices have indeed been reduced due to the reduced VAT rate we use double price tags, “said the chain’s communications department. At the same time, Kaufland reduced the price of the tax reduction at the beginning of December last year. The prices of selected goods here reached the New Year’s Eve before the holidays level.

It became cheaper last year

Last year, prices were also cut in Lidl. People in December last year attracted prices for which they no longer had to wait for reduced VAT. Double however, they left out the price tags here this time. “Recalculating the price of a specific product according to the reduced VAT rate, it does not mathematically reduce the price by ten percent, “said Lidl spokesman Tomáš Bezák. Value added tax value is only one of the factors influencing sales prices products, he added.

Since the New Year, the Coop Jednota network has also received new awards. And without double price tags. Chief Director of the Sales Section of the Network Branislav Lellák price development he is not optimistic this year. “Pricing is complicated a process in which many factors enter – since January to increase the minimum wage, rising energy prices, bonuses for work on weekends and at night, ”he says. Energy prices, but also salary adjustments it bothers not only traders but also suppliers.

People will not see double price tags even when shopping in Tesco.

Lower VAT will only slow down price growth

No significant price jumps. This summarizes the impact of enlargement 10% value added tax (VAT) rate on fresh vegetables, fruit, sour milk products or fresh pastries. Raising price measures although it slows down slightly, but its effect is reduced due to more expensive energies, wage supplements for store employees or higher prices on agricultural exchanges.

So what will it look like with food prices this year? “VAT on selected Although food has been declining since January, on the other hand, several factors they will lead to higher costs in the food sector and push up prices food upwards, “points out the analyst of Poštová banka, Jana Glasová. He means not only the higher minimum wage from which they are derived also the amounts of surcharges for work at night, on holidays or on weekends, but also energy auction. Rising oil prices and agricultural products. We therefore expect that in the final settlement there will only be a slowdown in food price growth. “This year, inflation would could slightly slow its growth rate to 2.5 percent, “he estimates analyst.

Thus, prices should grow a little slower than last year, when they jumped by 2.7 percent. In December last year, inflation reached three percent. This was shown by the data of the Statistical Office of the Slovak Republic. Prices grew faster only in 2012. Last year, food prices rose significantly. In December they jumped by up to 5.2 percent year on year.

Under the current development of food prices, according to analyst UniCredit Bank Ľubomír Koršňák is still signed by the African swine fever. Dragees because of it mainly pork and products from it. This year, however according to him, the price increase will slow down the pace – food should only auction by more than two percent. However, the lower tax rate will not be signed under it of value added, but the economy. Her slowdown “will start to sign as well under a slight slowdown in the growth of prices of goods and services “, he explains Koršňák.

From the beginning of the new year, a reduced rate applies to selected healthy ones grocery store. They thus expanded the range approved in 2016.