„At the moment, there is no noticeable reflection of the conflict in food prices. There is even stabilization. There is also a seasonal supply of higher prices for fruits and vegetables, which is related to small quantities. For basic food products, the deviations since the beginning of the year are between 3 and 5 cents. Pork has become cheaper by 29 cents”. He stated this in the program „Crossroads” on Nova TV Vladimir Ivanov, who is the head of the Coordination Center for the Euro Mechanism and Chairman of the State Commission on Commodity Exchanges and Markets.
He defined the current situation as a “geopolitical storm” and emphasized that the fuel market is reacting the most violently. “We are observing an initial reaction on the columns – between 8 and 12 to 14 stotinki for diesel and between 7 and 10 stotinki for gasoline. This is only an initial reaction”, Ivanov explained.
As for whether the state can control price movements in a conflict, he was categorical: “It is completely uncontrollable and beyond the power of any government when such global processes begin. If they develop negatively, there is no one to control it. We saw it in 2022 – the situation then had a much stronger impact on the market than the COVID crisis”.
Ivanov also presented current data on the replacement of the national currency with the euro. “On the 20th day we were already in normal circulation, and on the 40th we finished with the money supply. Currently, 88% of the money supply has been seized. The remaining about 12% are destroyed banknotes, lost or in collections. The BNB will accept levs indefinitely, and commercial banks and post offices will exchange them free of charge until the middle of the year”, he specified.
According to him, the consumer basket is currently worth 57 euros, compared to 52 euros at the beginning of the year. “The difference of 4-5 euros is entirely due to variations in fruits and vegetables. We have a 102% growth in zucchini due to the small production in the entire region. In Italy, for example, their retail price is around 4 euros," Ivanov explained.