Soaring sugar prices could lead to a light Czech Christmas cookie season

Inflation in the Czech Republic has slowed to a greater degree than initially forecast over the past two months, but the prices of some consumer goods continues to soar. Food products used in the preparation of sweets rose considerably last month, according to the latest data from the Czech Statistical Office, meaning there could be fewer Christmas cookies on the table this holiday season.

The average cost of sugar in the Czech Republic rose 54.3 percent month-on-month in October, and has more than doubled since March. Both granulated sugar and confectioner's sugar have seen the same levels of increase.

"The pre-Christmas announcement is that there will be less cookies this year because people will bake less or not at all, and bakeries will limit their assortment," agricultural analyst Petr Havel told Právo this week.

Sugar isn't the ingredient for Christmas cookies that has seen skyrocketing prices right before the holiday season. The cost of eggs jumped 27 percent month-on-month from September to October.

Year-on-year inflation in the Czech Republic was 15.1 percent in October, which was actually down compared to September's 18 percent inflation. Still, the rate of inflation is significantly higher than last year, when it was around six percent. And the cost of many food items, in particular, continues to skyrocket.

"The sugar that is currently on the market was produced from this year's harvest, when increased costs such as fuel, energy, and more expensive fertilizers and seeds, have already taken effect," Havel tells Právo.

According to the analyst, increased consumer demand over the holiday season also play a role. In general, the cost of food items can be expected to rise through the end of the year before stagnating when the demand begins to fall early next year.

Eggs and sugar aren't the only food item that has been hit by soaring inflation. Compared to this time last year, the cost of flour has risen by more than fifty percent, chicken by more than forty percent, bread by more than thirty percent, and vegetables by nearly 25 percent. 

Along with Christmas cookies, there could be a little less of everything on the table this year. Coffee beans and low-fat milk have also shot up in cost, meaning a cappuccino or latte could soon become a luxury item.