The article presented here discusses the market situation from several angles. It is related to the question posed in the title. That is, whether prices will rise in our country and whether we should fear it.
Here it is stated that purchasing power is growing in our country and employee wages are rising, but this has not had much effect on prices. Czechs are conservative and overreact when prices are raised, especially for consumer goods and food.
In addition to this, competition as far as the retail network is concerned in our country is so intense that no company has yet dared to raise prices to prevent customers from leaving. In addition, the retail sector\’s sales have not grown sufficiently to afford to raise prices until the major retailers do so.
This is also why small and medium-sized businesses face difficulties in surviving, if not going bankrupt. Because larger firms are more likely to be able to cope with rising wages, raw materials, and supply costs, and can more easily keep prices down.
Thus small stores disappear and giant shopping malls flourish. But they, too, cannot keep prices down forever. So the questions
arise.
This is an interesting and quite scholarly article. Because as far as I can judge, prices are already rising, at least in this country. At least as far as the most insidious commodity, food, is concerned.
However, I completely missed one important point in the article. It is one of the factors that influence prices, and one that should not have been omitted here.
That is the behavior of politicians over the past few years.
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As is well known, markets are about balancing supply and demand. And it was populist politicians who printed and circulated enormous amounts of money in the last few years. So much so, in fact, that the banks did not want it and lent it out at all costs, trying to capitalize on it. As a result, deposit rates fell and savings (except perhaps for risky investments) were no longer rewarded. With the exception of store clerks, everyone has and is getting raises. Everyone wants more, and logically so.
And to the question of whether we should be worried about rising prices for goods and services, I would answer. [They will become more expensive and more expensive. The only question is whether we will notice it because of various “promotions”. For example, if a student ID card is specially priced at 25 kronor one day and the next day it costs 60 kronor or more, how can we tell if the price has already gone up with our pennies?
