SIMILAR ARTICLES

Romania and Juncker Plan: EUR 720 million attracted, of which 35% by Transgaz for BRUA

(The map of investment financed through Juncker Plan, by GDP share. Darker colours mean higher shares) The operator of national natural gas pipelines, Transgaz (TGN)… Mai mult

Top 3 reasons why young people leave Romania

Lack of trust in authorities, corruption and low living standards are the main reasons why young people leave Romania. The data is part of a… Mai mult

Massive increase in import of electricity, stimulated by government policy: 38% in first five months. Trend continues

Romania imported 38% more electricity in the first five months of this year, compared to the same period of 2018, according to the most recent… Mai mult

IMM Invest Romania – program implementing rules have been published

The Ministry of Public Finance announces that it has issued the methodological norms for the implementation of the Program for supporting small and medium-sized enterprises… Mai mult

Government is trying to save budget deficit: reductions in public administration system, cancellation of bonus for harmful conditions, excise duty on soft drinks

The Government is preparing the public for the first measures aimed at avoiding the budget slippage, which would be applied by the PSD-ALDE government. News… Mai mult

Cronicile

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

Romania and Juncker Plan: EUR 720 million attracted, of which 35% by Transgaz for BRUA

(The map of investment financed through Juncker Plan, by GDP share. Darker colours mean higher shares) The operator of national natural gas pipelines, Transgaz (TGN)… Mai mult

Top 3 reasons why young people leave Romania

Lack of trust in authorities, corruption and low living standards are the main reasons why young people leave Romania. The data is part of a… Mai mult

IMM Invest Romania – program implementing rules have been published

The Ministry of Public Finance announces that it has issued the methodological norms for the implementation of the Program for supporting small and medium-sized enterprises… Mai mult

Pollution import and car park expansion: comparisons with the other EU states

Romania is the EU country with the fewest cars in terms of the number of inhabitants, according to data recently published by Eurostat. We appear… Mai mult

Government is trying to save budget deficit: reductions in public administration system, cancellation of bonus for harmful conditions, excise duty on soft drinks

The Government is preparing the public for the first measures aimed at avoiding the budget slippage, which would be applied by the PSD-ALDE government. News… Mai mult

Laura Codruta Kovesi remains alone in the race for European Chief Prosecutor

French Prosecutor Jean-Francois Bohnert will be appointed as head of the European Financial Prosecutor's Office, a position for which he was heard on Thursday, 11… Mai mult

Romania - EU country with highest risk of dying in a road accident, Bulgaria is quickly decreasing number of victims since it built motorways

Romania recorded the highest road deaths in the EU also last year, with 96 deaths per one million inhabitants in 2018, almost double the EU… Mai mult

Latest developments in progress at Health Ministry: Differentiated wages based on performance, competitions organised at a regional level not by hospitals

Sorina Pintea announced on Thursday further new changes that will be brought to the functioning of the health care system, including new rules for employment… Mai mult

ANAF changes selection procedure for liquidators. Main changes

The new order on approval and selection procedures for insolvency practitioners is an important step to a very good direction, industry experts say. ANAF is… Mai mult

Romania loses competition for a seat at UN Security Council. MAE Excuse: Campaign started too late

Romania lost to Estonia in the final vote to get the non-permanent member position within the UN Security Council for the period 2020-2021. On Friday,… Mai mult

Business internationalization / eMAG makes a step to entry five new international markets and targets a business of EUR 2 billion

eMAG hopes to get the opinion of the Hungarian Competition Council over the next two months for the acquisition of Extreme Digital, the market leader… Mai mult

"At a distance from books": 85,000 teachers (one third of educational staff) are graduates of distance learning

Approximately 85,000 teachers are graduates of distance learning (ID) programs, Education Minister Ecaterina Andronescu said at a meeting with school inspectors from Caras-Severin County. The… Mai mult