Food prices in Slovakia continue to climb, even though the value-added tax (VAT) on basic food items was reduced from 10% to 5%. The opposition has raised concerns that the government’s efforts to combat inflation are having limited effect, with consumers still facing higher costs at the checkout. Drawing on data from the Statistical Office, the opposition highlighted that prices for several staple foods have increased year-on-year. Bread rose by 1.2% in May, cheese by 8.6%, and butter saw a significant 24% increase. Even items subject to the reduced 5% VAT have shown price volatility, while other foods taxed at the standard 19% or 23% rates have also surged. Mineral water rose by 6.1%, and egg prices jumped nearly 30%. New taxes, including a sugar tax, have contributed to sharp rises in fruit prices, with raspberries up between 26.6% and 44.6%. Although government representatives have claimed that food inflation is under control, the opposition points to both statistical data and everyday consumer experience to argue otherwise. They suggest that new fiscal policies, including the financial transaction tax and higher VAT on many goods and services, may be indirectly contributing to price increases across the retail food sector. In June, food and non-alcoholic beverage prices were again affected by broader inflationary pressures. Despite assurances from the Ministry of Finance that increased VAT revenues would support the state budget, updated forecasts indicate that tax collection may fall short of earlier expectations. Critics argue that Slovakia lacks a comprehensive analysis of the food supply chain—from production to retail—which could help identify the true drivers of price increases. With Slovak households spending on average 21% of their budgets on food and beverages, the impact of rising prices is felt most acutely by low-income families. Source: TERAZ