The State Made a Decision on Bread Prices – Details Revealed

The fact that the increase in food prices in recent times has not kept pace with salary increases creates certain difficulties. Although essential products like bread and flour have not become more expensive, an increase in the prices of other food items is observed.

What are the main reasons for the price increase? Which products might become cheaper?

The editorial office reports that economist Gunay Huseynova, speaking to globalinfo.az, stated that in a situation where salaries do not increase, the prices of food products and other essential goods should remain stable.

“If the minimum wage does not increase, salaries in most of the private sector will also not increase. When the minimum wage is raised by 5-10%, a race to change price tags on counters begins. Another issue is pre-holiday price increases. The ongoing war in border regions is also cited as a reason for price increases, under the pretext of expensive imports.”

The economist noted that the state is taking measures to keep bread affordable:

“The price of wheat has increased in the countries we import from, which could affect the domestic market. However, to prevent the price of bread from rising, the state intervenes, long-term contracts are signed, subsidies are allocated, and strategic grain reserves can be utilized.”

G. Huseynova emphasized that price increases are mainly attributed to imports by entrepreneurs:

“However, price increases are also observed in local products that are not related to imports. This is explained by general inflation. There is little time left until the summer season. Products will be harvested and sent directly to foreign markets like Russia and Turkey. As a result, scarcity and price increases may re-emerge in the domestic market. If there is a product mismatch in those countries, citizens witness temporary price drops when trucks return, because agricultural products spoil quickly.”

According to the economist, certain restrictions and conditions should be applied when providing state support and subsidies:

“The state should provide support so that producers can earn foreign currency and sell products at a high price, while citizens in the domestic market do not face difficulties, do not become dependent on products, or are not forced to turn to imported, genetically modified products. In fact, some citizens, listening to experts, act more sensitively in this matter, buying land in suburban areas to cultivate for their own needs or leasing land annually to gain both income and produce.”