By the decision of the Government of the Federation of Bosnia and Herzegovina, the price of bread in bakeries and other outlets will be limited.
The goal, as explained, is to protect the standard of living of citizens and alleviate inflationary pressures on the basic necessities of life.
The retail price for any package of bread is determined in proportion to its actual net weight. This means that the price of 1 kg of bread cannot be higher than 4 KM, and that of 500 grams cannot be higher than 2 KM, including VAT.
This measure applies to white, semi-white and black wheat bread that are produced from different types of wheat flour, regardless of the trade name of the product, and the Decision applies 60 days from the date of entry into force.
The prices of 500 grams of bread of the mentioned types range from 1.75 to 2.50 KM, and 600 grams around 3 KM. The price of bread per kilogram is on average from 3.80 to 4.20 KM.
While bread producers in the next 60 days will not be able to increase prices above those permitted by the decision, economists also believe that this will not have an effect on the financial situation of citizens.
Economics professor Damir Bećirović notes that the decision will probably be upheld in the short term, but it does not make economic sense in the long term, he writes BHRT.
– The prices of other bakery products will rise. Also, it can happen that a lower quality raw material is included in the bread. In the last case, there may be tax evasion, bakers will resort to not issuing invoices – says Bećirović.
Pensioners buy medicine on the cheap, fruit and meat products are a luxury for many, and only a few buy heavier bread.
– The problem is that he collects everything. The price of flour as a basic raw material is five or six times lower than the price of bread.
Here is the problem of economic policy. This measure will be welcomed by many citizens, but this is volunteerism – points out Vehid Jahić from the Tuzla Pensioners’ Party.
