Prices of food products gradually rising

10-12-2011

The upcoming VAT hike on foods and medicines due to come into effect in January has arrived early as many shops have gradually started increasing the price of various products, the internet daily idnes reports. The paper says that this “creeping” price rise is an old business tactic that served well in the last VAT hike in 2008 when the tax on food products went up from 5 to 9 percent. In the new year prices will stay put and people will get the impression that nothing much has changed. Czechs will be paying more next year not just for the said items but for water, power and public transport as well.