• Producers in the milling and baking industry have started to adjust their prices, as a result of the waves of utility price hikes and the recent increase in labor costs.
Industry representatives do not rule out further price increases.
"We have to analyze the cost of energy, natural gas expenses and labor, the latter becoming more expensive due to the fact that the minimum wage has increased twice. All this was accounted for, and the one who found that he already had higher expenses than receipts had to increase the price of the product. There are signs in this direction and I think we should expect further price increases in 2018. We were notified that energy will become more expensive by 35%. However, all these increases in utility tariffs can be seen in the price and not only in bread. Each economic agent makes his calculations and takes the decision that suits him", Aurel Popescu, the president of Rompan, told economica.net.
Average increase of 6-8% in the price of food products
"Don't forget that the milling and baking industry works, in a proportion of over 90%, with machinery that consumes electricity. The price of gas also increased, something that the state institutions had promised after March 31, but they did it now, in the middle of winter. The leu/euro exchange rate also depreciated", recalls Dragoş Frumosu, president of the National Federation of Trade Unions in the Food Industry (FNSIA), for agerpres.ro.
The increase in the prices of raw materials, on the one hand, and on the other hand, the increase in the price of transport, as a result of the increase in fuel excise duty, the increase in the price of electricity and gas can cause an average increase of 6-8% in the price of food products, explains the president FNSIA.
Expensive in the chain
Since January 10, 2018, the price of natural gas has increased by 10%, and that of electricity is higher by 7-13%. In addition, this year, the price for trucks will increase by at least 85%.
According to the data of the National Institute of Statistics (INS), eggs, butter and fresh fruit are the food commodities that rose in price the most in December 2017 compared to the previous month of the same year.
Thus, eggs became more expensive in December 2017, compared to the previous month, by 6,72% and by 43,19% compared to December 2016, butter by 2,65% (+22,77% compared to December 2016) and fresh fruit by 1,32% (+11,06% compared to December 2016).
In December 2017, the annual inflation rate rose to 3,3%, from 3,23% in November, due to the increase in food prices by 0,44% and non-food items by 0,28%, according to INS data.
