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Romanian PM Calls For Investigations Over Bread Price Increases

Romanian Prime Minister Calin Tariceanu asked agriculture and finance ministers to start an investigation to find out the reasons behind the decision to hike bread prices announced by the owners’ association in the industry, Rompan.
Romanian PM Calls For Investigations Over Bread Price Increases
09 apr. 2008, 17:02, English

Tariceanu also asked the Competition Council to intervene in the matter, considering that hiking bread prices is an unjustified measure.

“Which is the reason behind Rompan’s announcement to once more increase the price of bread? Which are the higher costs that led to the decision?” Tariceanu asked.
 
The official said that Romania is not facing a lack flour or wheat.
 
“We have to see why the owners’ association is looking to increase the price of bread, which is an unjustified measure from my point of view,” Tariceanu said.
 
The Prime Minister said that although the government is not in the position to control inflation, but only contribute to lowering it, the government is preparing certain measures to prevent price increases for certain products. Tariceanu didn’t give further details.
 
Aurel Popescu, head of the Rompan owners’ association in the industry, announced Tuesday bread prices in Romania would increase again by Easter, as wheat prices have continued to rise in the past week.
 
"Bread prices will increase very soon. Already, wheat prices rose RON0.1 in the past week, and producers will each calculate their own prices considering what they pay for flour and other related costs," Popescu said in a seminar on financing for rural areas.
 
He added the price of wheat in the past week reached RON1.05 per kilogram and could go up to RON1.1 by the time of the new harvest.
 
Producers on the Romanian market started raising bread prices in July-August 2007, citing higher wheat prices in Romania and Europe following drought-damaged crops. Price hikes varied from one producer to the next and ranged between 5-6% and 20-30%.
 
Romania’s 2007 cereal crop nearly halved on the year, to some 3 million tons, due to scorching temperatures that affected the country.