Coffee is on its way to becoming a luxury item in Czechia and across EU

Coffee prices are gaining steam, says a new report from Eurostat that shows the rising costs of the daily morning cup. Those who take their coffee with milk and sugar will pay even more for their morning fix.

In its data for August 2022, Eurostat, the statistical arm of the European Union, shows that the price of coffee across the bloc was on average 16.9 percent higher than in August 2021, while in August 2021, the price of coffee was on average 0.5 percent higher than in August 2020. Annual inflation has been on the rise in the EU since October 2021.

The data shows that prices rose by half a percent year-on-year on average. "Recent price increases may make this morning staple almost a luxury," Eurostat said in its newly released report. 

Cappuccinos, flat whites, and other milky favorites will likely become even more expensive given the fact that sugar and milk prices have increased since last year.

The price of fresh whole milk increased on average by 24.3 percent between August 2021 and August 2022, while the price of fresh low-fat milk increased by 22.2 percent in the same period. 

Coffee, whole and low-fat milk, and sugar saw price increases in all EU member states except for Malta, which reported no change in the price of its fresh low-fat milk.

The largest annual inflation in August 2022 was reported for sugar. Notable rises were seen in Poland, where prices went up by 109.2 percent, and Estonia, Latvia, Bulgaria, and Cyprus.

In terms of coffee price hikes, coffee-loving-nation Finland registered the highest annual inflation in August 2022, followed by Lithuania, Sweden, Estonia, and Hungary.

Hungary, Lithuania, and Croatia saw substantial rises in prices of both whole-fat milk and low-fat milk.

Czechia was listed as having one of the highest annual price increases for low-fat milk in the EU ranking fourth among the top five with Hungary, Lithuania, Croatia, and Latvia, respectively. Whole milk saw the biggest price jump in Lithuania, Croatia, Estonia, Germany, and Hungary, respectively.

The inflation rate in the European Union rose to a record 10.1 percent in August, while it was 9.8 percent in July. In the Czech Republic, data from Eurostat shows that sugar prices are currently breaking records.

Seznam Zprávy reports that while a kilogram of private label granulated sugar in the Tesco chain in Prague Smíchov cost CZK 20 in May, the same location now sells it for CZK 30. In Kaufland, a kilo of ordinary sugar now costs CZK 37. Milk and dairy prices are predicted to rise drastically in October after many dairies announced price increases.