Food prices in 1989 vs. 2024 showcase increase in Czech purchasing power

Despite recent surging inflation, Czech purchasing power remains significantly higher now than just after the 1989 Velvet Revolution, which will mark its 35th anniversary on Sunday. Recent data shared by the Czech Statistical Office compares the prices of consumer goods at the end of 1989 and September 2024, revealing just how much things have changed over the past three and a half decades.

Between 1989 and 2024, the average salary in the Czech Republic has increased by over 1,300 percent, outpacing the rise in prices for most everyday goods. However, as the cost of living continues to climb, the extent to which purchasing power has increased varies widely depending on the item.

The price of butter has risen significantly, from CZK 40 per kilogram in 1989 to CZK 225.93 in September 2024. Despite this jump, the average Czech today can still buy 156 percent more butter than they could 35 years ago, thanks to higher average wages. In 1989, the average monthly salary could buy a total of 79 kg of butter, compared to 203 kg today.

Other food staples have seen similar price increases. The cost of sugar has surged by 417 percent, from CZK 7.30 per kilogram in 1989 to CZK 20.42 in 2024. Similarly, eggs have seen a massive price hike of 440 percent, from CZK 13 for 10 eggs in 1989 to CZK 34.84 today.

However, these higher prices are offset by the significant rise in wages, allowing consumers to purchase far more than they could in 1989. In fact, the average wage can now buy 4.4 times as many eggs as it could in 1989.

Meat has also seen significant price hikes, though they have been offset by the increase in wages. In 1989, a kilogram of pork shoulder cost CZK 46, while today it costs CZK 147.65 — a 221 percent rise. Despite this, Czechs can now purchase more than three times as much pork shoulder as they could back in 1989.

Similarly, the price of domestic rum (tuzemák) has risen by 179 percent, from CZK 100 per liter in 1989 to CZK 278.66 in 2024, yet Czechs can now purchase over four times as much rum as they could three and a half decades ago.

Which items have seen the biggest price increases? The cost of milk has risen by over 1,000 percent, from CZK 2 per liter in 1989 to CZK 23.07 today, while the price of potatoes has increased by 965 percent. Still, Czechs can purchase 25 percent and 36 percent more of these items, respectively, thanks to rising wages.

But not all products have followed this trend. As the price of bread has increased by 1,433 percent, the average Czech can now afford slightly less than they could in 1989. Caraway bread cost CZK 2.80 per kilogram in 1989 but has risen all the way to CZK 42.91 today, with the average Czech salary able to purchase 6 percent less.

While inflation continues to impact everyday consumers, the Czech population has seen substantial improvements in their purchasing power since 1989. The Czech Statistical Office data reveals a significant increase in the quantity of many items that can be purchased with the average wage.