The government continues its inflation-reducing measures. As of August 1, the extent of mandatory food price promotions will increase to 15 percent and the range of foods designated for promotions will also expand, the Ministry of Economic Development (GFM) pointed out in its announcement on Monday.
The measure simultaneously protects families and pensioners from increased food prices due to war and sanctions, and contributes to further reducing sanction inflation.
Mandatory food promotions started on June 1: food prices have fallen, store chains are announcing new discounts one after the other, promotions also contribute to reducing inflation.
In order to further increase price competition, the government has decided to increase the amount of mandatory in-store sales by one and a half times – from 10 percent to at least 15 percent – from August 1. In addition, the government is withdrawing the food price freeze that has been in place for 1.5 years in such a way that the mandatory promotions also cover the affected product ranges. Basic foodstuffs will therefore continue to be available at favorable prices. Currently, the mandatory promotion covers poultry meat, pork and beef, fish and canned fish, meat products, milk, sour cream and substitute products, yogurt, other acidified products, other dairy products, cheese, butter, margarine and their products, other fats, bread, pastries, dry pasta, rice, other cereals, flour, sugar and preserved flour products, fresh vegetables, fresh fruit, fruit and vegetable juices, ready meals, spices, flavorings, coffee, tea, for mineral waters and soft drinks – classified the GFM.
Starting in August, the mandatory promotion will be supplemented with granulated sugar, fine wheat flour, sunflower cooking oil, home-made pork leg, chicken breast and chicken thigh, 2.8 percent UHT milk, eggs, and table potatoes, excluding new potatoes.
In accordance with the government’s decision, the extent of the mandatory promotions for 20 product groups – compared to the lowest price applied in the 30 days prior to the promotion – will rise to at least 15 percent, on the other hand, the mandatory promotion rules also extend to the former 8 price-stop product types, so that all product types must be sold in at least 2 product types on a weekly basis to offer a product at least 15 percent cheaper than the purchase price. In addition, temporarily, the prices of the remaining 6 product types cannot be higher than the purchase price.
The government has achieved with the mandatory promotions and the online price monitoring system that merciless price competition has emerged, food prices are falling drastically, so inflation may drop to single digits before the end of the year, emphasized the GFM.
