Not only is a trip there much cheaper than a visit to Italy or France; sometimes in a couple of weeks spent in Prague, a tourist spends less money than in their home capital. A lunch in a good restaurant costs 6-7 euros, a shot of absinthe - 1.5 euros, and a mug of Krušovice even 50 euro cents - a complete freebie. But every freebie comes to an end sooner or later. Since the new year, prices have started to rise in Czechia.
The price increase is linked to Czechia's accession to the European Union. The country will become a member of this organization only in May, but it has already started bringing local legislation into line with European standards. And first of all, most VAT benefits were removed. Previously, for example, communications and the Internet were subject to a reduced rate. Since January 1, instead of a 5% surcharge on the price, consumers have to pay 22%. Accordingly, in just one day, prices for telephone (both landline and mobile) and Internet rose by about 15%.
In addition to communications, prices for gas, electricity, heating and water rose by about 5%. Tourists, of course, no one presents electricity bills to. But this price increase will definitely hit their pockets: restaurants and hotels will pay more for utilities and as a result will raise prices.
Due to the increase in the excise tax on fuel, gasoline has become more expensive. The increase in the tax amounted to 3-7% of the cost per liter. Nevertheless, gas stations have raised prices by almost 10% and continue to increase them by about 0.5% per day. This will certainly affect the prices of other goods as a result of higher transportation costs.
A price increase was also expected for cigarettes and expensive alcohol - excise taxes on them were also raised. But wine shops and tobacco shops gave customers a New Year's gift. In December of last year, they made massive wholesale purchases and are still selling old stock at old prices. But this will not last long, especially since the population is actively buying cigarettes and alcohol in reserve. It is expected that the price increase will occur at the end of the month and will amount to approximately 12-15%.
Over the past year, inflation in Czechia was about 1%. For just this January, 2% is expected. And this is only the beginning. By May, due to further alignment of Czech tax legislation with European standards, services of hairdressers, cosmetologists, lawyers, painters, and laundries with dry cleaners will become more expensive. In addition, many customs duties will increase, which will lead, for example, to higher prices for most fruits and vegetables, as well as sea fish. Prices for all goods from Asia, against which the European Union has introduced protective duties, will rise especially. True, there is a silver lining in this barrel of tar: European cheeses, wines and, most importantly, cars will become cheaper, as Czech duties on them will be abolished.
Of course, Czech prices will not immediately reach the pan-European level. Prague will remain a city with a gentle price regime for at least another two or three years, until the euro is introduced. But students and other budget-conscious tourists had better hurry to visit Czechia: the process has begun.