The government set price caps for some staple foods, cooking oil, wheat flour, 2.8% milk, chicken breast, pig leg, granulated sugar, and chicken fat in phases in 2021 and 2022.
The purpose of the provision is to guarantee that everyone can purchase the provided goods at the established official price, even with significant inflation. A price cap will only result in a shortage of goods, and retailers will transfer their losses from the price of the price-capped products to other products anyway, further increasing the already high food inflation. According to opponents of the introduction of official prices, lowering the VAT on food would have been a better move in this situation.
Each store was required to maintain the typical daily weight loss from the provided products when the price cap was implemented, per the rules. In order to prevent product shortages, the government will require retailers to maintain twice the average daily weight loss from products with price caps starting in January 2023. The official pricing will remain in effect until April 2023.
Users of Pulzus were questioned about their opinions of the required volume increase. 42 percent of respondents oppose this requirement, while 48 percent support increasing the minimum store number of products with price caps. 10% of the respondents said they had no opinion on the matter.
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