Czech food market is significantly influenced by EU market development. Food prices tend to converge to the long-term average of prices in the EU market and they copy EU price trends. The paper aims to identify the relationship between the development of prices in the global market and EU market. Another aim is to analyze the development of prices in the retail market in the Czech Republic and to identify the basic trends in selected food products. The article focuses primarily on the elasticity of selected foodstuff aggregations in relation to global prices development. There is also analyzed the impact of changes in rates of VAT from 10 % to 14 % on food prices in general and prices of selected products in selected retail companies. The results of analyzes show that Czech food market reacts sensitively to changes in food prices on global markets as well as on the EU market. It should be highlighted that the influence of EU market on Czech food price development is much higher than the influence of global market. The growth rate of VAT is not completely absorbed by traders and producers and the certain portion of VAT rate growth is transferred into final consumer prices.
Acta Universitatits Bohemiae Meridionalis (ISSN 1212-3285, online 2336-4297) University of South Bohemia in České Budějovice, Faculty of Economics Studentská 13, 370 05 České Budějovice, Czech Republic Contact: email@example.com; Phone Number: +420 38 777 2486