Christmas shopping cheaper than 1989

Christmas shopping in Slovakia is now far cheaper compared to salaries than towards the end of the Communist era three decades ago. That stems from a joint analysis of CFD World and the Prague-based CETA (Centre for Economic and Market Analysis). The analysts stated that Christmas shopping in 1989 cost more than four average monthly salaries, while it now equals only one half of the average monthly salary. Prices in general may be higher now - with the exception of electronics, which were luxury goods during Communism and shortly after its fall - but nominal salaries have risen ten times since then. Clothing now costs eight times as much as 30 years ago, with Christmas trees being six times more expensive, but one would spend roughly the same amount for a TV set as in 1989. Meanwhile, food is now between three and seven times more expensive, while perhaps the only exception is milk, with its price approximately copying the pay growth curve. "Comparing the Czech Republic and Slovakia, the former is still somewhat more prosperous, but the difference has been diminishing gradually. In 2004, i.e. before Slovakia adopted the euro [in 2009] ... Christmas shopping cost the Czechs 55 percent of their average monthly salary, while it was 70 percent in Slovakia. Nevertheless, the difference in 2019 is only 10.5 percentage points," said CFD World chief analyst Martin Kristoff.