The cost of bread will increase this month by a maximum of 5-7% – expert
In Ukraine, the cost of bread will increase this month by a maximum of 5-7%.
Ukraine , Ukraingate , 8 , February , 2022 | Economy
Quote:
“There are objective reasons for (rising bread prices – ed.). Unfortunately, the issues with agricultural carriers have not been fully resolved. “Auctions for the sale of cheap gas cannot provide all those who want bread with cheap gas. That is, they are forced to invest expensive gas in bread production,” Pendzin said.
Details
According to him, the issue of food wheat, which was taken out in November, is also very problematic.
“The minimum wage rose in December, which will also be included in the price of goods,” said the expert.
Pendzin noted that every month bread added 2% to the price.
“I added both last year and added the year before last (2% – ed.). We were told that bread would be 15-20% more expensive. But the government is already giving a cheaper version of gas, so I think that the maximum (plus – ed.) 5-7% this month we will see and all, “- said Pendzin.
In addition, Pendzin stressed that the problem is not in the price of bread, but in the ability and ability of people to buy it.
“The state should intervene and help the poor with direct targeted assistance in order to reduce their costs (cost – ed.). The problem is not in the price of bread, but in the ability of people to buy this bread. When we talk about people with high enough incomes, I don’t think any of them know how much bread really costs. If they need it, they buy it. We are talking with you when we talk about the cost of bread, we are talking primarily in terms of income of the poor, “said Pendzin.
According to him, the biggest problem today is that the government is going to repay all the reduced prices for socially important products at the expense of business.
“Limiting the trade margin is limiting retail income. Auctions for the obligatory sale of own gas by private organizations are minus the income of private individuals. Not a single penny in the state budget has been allocated to provide targeted assistance to the poor, ”Pendzin said.
We will add, it was reported that in Ukraine the prices for bread increased again. This time, the price has reached a record high for the last five years.
Addition
In late December, the government announced plans to impose markup restrictions on a number of social and food products after Ukrainian producers of bread and other food products said they would produce fewer products due to abnormal gas prices.
Bakers are not the only ones facing this problem. This was emphasized by confectionery producers, but also other food industries, pointing out that if the authorities do not intervene, it could lead to catastrophic consequences.
At the end of the year, amid rising inflation, the government introduced state regulation of prices for several products – during quarantine. Currently, it covers 11 products: loaf, sunflower oil, rye-wheat bread, buckwheat, granulated sugar, high-quality wheat flour, Ukrainian-made pasta (vermicelli from high-grade flour), pasteurized milk with a fat content of 2.5% (in film) ), chicken eggs of category C1, poultry (chicken carcass), butter with a fat content of 72.5%. It is now forbidden to set a trade margin of more than 10% on these goods.
Source: Ukrgate