Moldovan competition council investigates increases in bread prices

Chisinau, 18 August /MOLDPRES/ - The plenum of the Competition Council instructed starting investigation on "signs of violating the legislation in the competition sector through concomitant increase of bread prices by bread-baking enterprises."

The Competition Council suspects the bread-baking enterprises of cartel agreements in case of a 15-per cent rise in bread price. Any coordinated action of rival economic agents, which jointly hold a share of more than 35 per cent of the market, "is forbidden or is deemed as null," under the law on competition. These legal provisions refer inclusively to establishing prices.

The  Bakers Association and the National Association of Flour Milling and Baking Industries informed about a 15-per cent increase in bread price starting from 15 August. 

A 24.4 per cent rise in the flour price, increase in the electric energy and gas rates, as well as the Moldovan leu's depreciation led to the increase in bread price, bakers said.

(Reporter V. Bercu, editor A. Raileanu)