Traders and producers warned that we will pay more expensive bread due to the abolition of the zero VAT rate in the last days of 2024. However, the higher prices of all baked goods since January surprised a large part of consumers, NOVA points out.
In a randomly visited bakery, prices have jumped by 20 percent, but soon the owners are planning a new increase due to more expensive electricity and staff salaries.
A check of bread prices on December 31 and January 3 shows that the difference for the "Dobrudzha" type is already at least 40 stotinki. But just like confectioners, bakers are planning another price increase due to higher costs for salaries and bills since the beginning of the year.
“We will have a reciprocal increase of more than 20%, because we have an increase in salary, electricity and other types of expenses. Maybe about 30 percent will be the price of bread, snacks, croissants and other flour products, on which VAT is increased. This always leads to stress in sales, because bread is the most important thing in a house. A large part of customers react sharply when there is an increase in bread“, said baker Alexander Yosifov.
Consumers in various cities of the country are reporting a rise in the price of bread. Traders explain that this is due to the return of the 20 percent VAT rate, which was zero until now. The reasons also include the increase in the price of electricity and water, as well as the increase in the minimum wage. In the retail network of Stara Zagora, the smallest increase is 30 stotinki.
Since January 1, the largest bakery in Stara Zagora has been supplying commercial companies at prices between 1.56 and 1.60 for a standard 600-gram loaf of bread, explained Gergina Dimitrova, deputy manager of the company:
"From then on, what the price will be in the retail network - each retailer determines the markup they will put on it," Dimitrova commented to the Bulgarian National Radio. She added that now the price of bread is 20 percent higher. She does not rule out new prices due to the increase in the price of water, electricity and the increased minimum wage. It is not reflected well. This VAT, which the state was refunding to us, helped a lot to keep prices down. Maybe a month or two, after the reports come out and we do an analysis, then I can already say what will happen next", summarized Gergina Dimitrova.
In some grocery stores, the increase in bread is 30, and in some places even 50 stotinki. There is also an increase in the price of pasta in small bakeries in Stara Zagora. Nevena Pavlova explained that their products will also increase in price from next week:
"Basic bread will be increased by at least 20 stotinki".
Bread in Dupnitsa also became more expensive, with the increase being 20%.
The increase in price in Pazardzhik of the most popular types of bread is between 20 and 30 stotinki. Traders comment that so far there is no negative reaction among customers, as shopping after the New Year holidays is still weak.
- There is a jump. Bread has gone up by 20-30 stotinki. It depends on the type of bread, on all types.
- They returned the 20 percent VAT and increased it. We expect another jump in non-alcoholic beverages. They raised them. They are 15-20 percent higher. We expect them to raise everything - beer, alcohol. It will be more striking with cigarettes - said traders from Pazardzhik.
A price increase is also reported in Shumen. The most common bread in stores now costs over 2 leva, a check by Radio Shumen showed. As of today, there has also been an increase in the prices of pasta in the city.
Bread in Haskovo has become more expensive by 30 stotinki as of today, a BTA check of the retail network showed.
The price of two of the companies that have produced pasta in the last 24 hours has changed - the "Haskovo" Bakery and the "Harmanli" Bakery.
The 650-gram portion of the "Karina" white bread is now 1.75 leva, compared to the previous price of 1.45 leva. A 500-gram loaf is now available for 1.65 leva, while the previous price was 1.35 leva.
The increase is exactly 20 percent and not a penny more than the legislative change in the VAT rate from zero to 20 percent from January 1, commented Yasen Bozukov, the procurator of the largest producer in the region - Haskovo Bakery.