The Bulgarian Academy of Sciences forecast over 200% jump in food prices in the pessimistic version and 50% in the optimistic one. Assoc. Prof. Ognyan Boyukliev from the Institute for Economic Research at the Bulgarian Academy of Sciences expects that the price of basic foodstuffs will rise at least twice if the war in Ukraine continues.
The government has proposed zero VAT rates on bread and a number of other anti-inflation measures.
“The whole package is more political and somewhat anti-inflationary. It is aimed at all voters. There is more politics and much less economics. The abolition of VAT will help bakers to some extent, but will hardly affect the price. In large cities, bread is sold in large hypermarket chains of blanks. This is increasingly displacing our manufacturers. I don’t know what role VAT will play here “, commented Assoc. Prof. Boyukliev in” Bulgaria in the Morning “on Bulgaria On Air.
He described the “25 cents” discount on A95 petrol and diesel as “good”, but noted that Greece has such support for the islands – choosing the group most affected by inflation.
“I would direct money to short chains. To make transport around Sofia cheaper for vegetable producers. Raising the threshold of mandatory VAT registration will have some impact,” the scientist from BAS told Bulgaria ON AIR and added that he would direct the funds to the working poor.
“The war is a chance to help local vegetable growers or fruit growers. Everything is imported. A harvest awaits us, a new harvest. There are enough sown areas, they should support exports. There is no way we can isolate ourselves from the international market, “said Assoc. Prof. Ognian Boyukliev.
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