Competition Council chief, on foodstuff price developments: What costs, on average, RON 100 in Europe, in Romania costs RON 60

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The developments of foodstuff prices are not bad, however a generalized increase should be fought by macro-economic means, i.e. by the Government’s fiscal-budgetary policy and by the central bank’s monetary policy, Competition Council chief, Bogdan Chiritoiu, has said on Tuesday.

“The Competition Council (CC) does not investigate generalized price increases, only punctual increases. If we talk about a generalized price increase, this means inflation, it is a macro-economic phenomenon. As the Prime Minister said recently, the fight against inflation is conducted by two means: the fiscal-budgetary policy of the Government and the monetary policy of the National Bank. (…) We expect that the Price Monitor leads to pressures on the companies to cut down the foodstuff prices,” Bogdan Chiritoiu said. He claims that it is easy for a company to find about the competition’s prices, but for the consumers is hard.

“The foodstuff price developments in Romania are not bad. European statistics reveal that the foodstuff prices in Romania are, on average, about 60% of the prices in the European Union. Thus, what costs, on average, RON 100 in Europe, in Romania costs RON 60. It is a relatively good situation,” the CC chief said.

Chiritou said the 4% price increase for foodstuff in 2017 is not high.

“It looks high to us, because we have disaccustomed with inflation. Before joining the EU, the inflation in Romania was registered in two figures. We were used to see foodstuff prices grow by 10% every year. For several years now, we have joined the healthier countries and we’ve become accustomed to low inflation, so low that, at some point, we were worried it was too low, to avoid deflation. Good or bad, we’ve overcome this issue. The National Bank tells us the current inflation is within the expectations,” Bogdan Chiritoiu said.

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