SIMILAR ARTICLES

AOAR – Economy against new Criminal Code: businessmen denounce excessive protection provided to officials who cause damages to economy

The Businessmen’s Association of Romania (AOAR) asks the ruling coalition to explain the mechanism by which, after changes introduced on Wednesday in the Criminal Code,… Mai mult

“We are working on a tax amnesty mechanism”: announcement made by Minister of Finance

Finance Minister Eugen Teodorovici said at a press conference held in Bistrita that “a mechanism of this type is in progress”, a mechanism on tax… Mai mult

Fitch confirms Romania’s rating at BBB- but warns: fiscal loosening is risky for macroeconomic stability

Fitch Ratings confirmed on Friday Romania’s rating for long-term foreign and local currency debt at BBB-, with a stable outlook, but warned that fiscal loosening… Mai mult

Number of insolvencies increased by 12% in first five months. Suspended activities – plus 31%, dissolutions – plus 59%

The increase in the number of companies and PFAs in insolvency was 11.97% in the first five months of this year, compared to the same… Mai mult

Refusal to work annuls entitlement to social assistance – bill voted in Chamber of Deputies

Deputies adopted a draft law on Wednesday whereby entitlement to social assistance ceases when a job is refused. The decision, Agerpres announced, was taken with… Mai mult

Competition Council: Food price increase could be caused by demand excess from budget deficit

de Razvan Diaconu , 27.11.2017

The Competition Council started an analysis, following the request of the Ministry of Agriculture, to establish the causes of the accelerated food price increase this month.

One of the possible reasons is the increase in the budget deficit, which leads to an increase in imports and puts pressure on inflation, Bogdan Chiritoiu (foto), president of this institution, told Agerpres on Tuesday.

The Competition Council’s analysis comes after the Agriculture Minister Petre Daea voiced his perplexity on Friday that prices of some food products, especially the eggs, meat and dairy products, have increased lately even though the ministry’s analyses have not shown any objective reasons for price increases. “We ask for the Competition Council’s support to see if there are elements of any agreement between traders, as we cannot explain otherwise,” Petre Daea announced.

We received a request from the Ministry of Agriculture to analyse the food prices, especially for butter, eggs and some meat products, where prices had radical evolutions. It is a good thing they send us such a notification, but it would be good to come up with data, more information. We also asked for that because the line ministry has more information on this issue,” Bogdan Chiritoiu said on Tuesday.

He explained that some price increases seem to be regional in nature, such as the price of eggs and butter, but this would not fully explain the increases in Romania.

At the same time, when asked if he also suspects, the same as Petre Daea, an agreement between retailers, Bogdan Chiritoiu replied: “I could not say this now, it is too early. We will analyse the whole chain, from production to the shelf, to see if we are dealing with a functioning market mechanism.”

According to Bogdan Chiritoiu, things might be much simpler in reality: the price increases could be the effect of the increase in the budget deficit. “The demand excess from the budget deficit transfers to imports and the trade deficit increases. So, if we have a budget deficit, it attracts imports, which generates a decline in the exchange rate and inflation. Since most of the food products are imported and the Romanian leu declines against the euro, that generates price increases. These are rules of the economy,” Chiritoiu explained.

The President of the Competition Council could not offer a timeframe in which the analysis could be completed, expressing the hope that will be achieved as soon as possible.

He reminded the fine of EUR 35 million applied in 2015 to Metro, Real, Selgros, Mega Image and their suppliers following some anti-competitive agreements, and mentioned that there is another investigation that the Council analyses, on possible illegal behaviours of Cora, Carrefour, Kaufland and their suppliers, an investigation to be completed in the first part of next year.

On Friday, the Agriculture Minister Petre Daea said that recently “took a walk” in several markets and stores in Bucharest and found “some abnormalities and incomprehensible things”, as there were no increases in the production costs, but the price of food products doubled at the shelf in some cases.

Farmers also ask authorities to intervene, as they tell they sell their production at lower prices than a few weeks ago, but on the other hand, the products reach the consumer at much higher prices.

Mergeți în homepage ›

Publicat la data de 27.11.2017

Lăsați un comentariu


NEWS

Fitch confirms Romania's rating at BBB- but warns: fiscal loosening is risky for macroeconomic stability

Fitch Ratings confirmed on Friday Romania's rating for long-term foreign and local currency debt at BBB-, with a stable outlook, but warned that fiscal loosening… Mai mult

"We are working on a tax amnesty mechanism": announcement made by Minister of Finance

Finance Minister Eugen Teodorovici said at a press conference held in Bistrita that "a mechanism of this type is in progress”, a mechanism on tax… Mai mult

AOAR - Economy against new Criminal Code: businessmen denounce excessive protection provided to officials who cause damages to economy

The Businessmen’s Association of Romania (AOAR) asks the ruling coalition to explain the mechanism by which, after changes introduced on Wednesday in the Criminal Code,… Mai mult

Number of insolvencies increased by 12% in first five months. Suspended activities - plus 31%, dissolutions - plus 59%

The increase in the number of companies and PFAs in insolvency was 11.97% in the first five months of this year, compared to the same… Mai mult

Transport infrastructure in Romania needs EUR 70 billion - double as compared to existing resources

The investment needs in Romania's transport infrastructure exceed EUR 70 billion, while the available resources by 2030 are EUR 36 billion, according to the Transport… Mai mult

Refusal to work annuls entitlement to social assistance - bill voted in Chamber of Deputies

Deputies adopted a draft law on Wednesday whereby entitlement to social assistance ceases when a job is refused. The decision, Agerpres announced, was taken with… Mai mult

Subsidy of RON 900/month for employing a graduate based on contracts of indefinite duration

The National Agency for Employment (ANOFM) grants subsidies of RON 900/month to employers who employ graduates of educational institutions, with contracts of indefinite duration, within… Mai mult

C.P. Tariceanu, before the heads of Senates from EU: The European Commission has encouraged the parallel state, in Romania it is like in the 50's

Calin Popescu Tariceanu (foto) delivered a very tough speech on Friday, in the Senate, addressed to the European Commission, which he accused of encouraging the… Mai mult

National Bank of Romania wants to lower indebtedness limit in granting loans to individuals

The National Bank of Romania (BNR) sent to banks for consultation a draft amending Regulation 17/2012, which provides for a consistent lowering of the indebtedness… Mai mult

High impact provisions: Senate has adopted PSD-ALDE amendments to the Code of Criminal Procedure

Senators adopted on Wednesday the draft for amending the Code of Criminal Procedure, by 74 votes for to 28, against. The bill goes to the… Mai mult

RBL: Workforce crisis is worse than economic crisis - 3.4 million Romanians have left the country in last 10 years

Migration is one of the most serious problems facing Romania at this time, along with the lack of infrastructure. However, the return of Romanians to… Mai mult

World Bank: Romania's economy could grow by 5.1% in 2018

Romania's economy could grow by 5.1% in 2018, according to the World Bank summer forecast. The estimate has been improved by 0.6 percentage points above… Mai mult

Ministry of Energy: Natural gas from Black Sea will be exported through Onesti - Isaccea - Negru Voda network

The Ministry of Energy issued for Transgaz the construction permit for the consolidation of the transport system between Onesti (Bacau) and Isaccea (Tulcea) and for… Mai mult