It's too expensive.
'Caro' — 'KA-ro'. Two syllables, stress on first. 'C' before 'a' is hard. Simple and clear.
Expressing that the price is too high — the first step in any negotiation. Say it with a friendly tone, not an accusatory one. It's an invitation to negotiate, not an insult.
'Troppo' (too much) + 'caro' (expensive/dear). 'Caro' is one of the most useful Italian adjectives — also means 'dear' (as in beloved). In market context it means expensive.
Costa troppo.
It costs too much.
Alternative — uses 'costare' rather than 'essere'
È un po' caro per me.
It's a bit expensive for me.
Softer — 'un po'' makes it less confrontational
Non è nel mio budget.
It's not in my budget.
Modern expression — using 'budget' which is widely understood in Italian
Saying 'è troppo caro' at an Italian market is not rude — it's an opening move. Italian vendors expect it and often interpret silence or acceptance as paying too much. The phrase signals you're a savvy, engaged buyer.