The expert warned about a possible increase in bread prices

The expert warned about a possible increase in bread prices

The cost of bread may rise in Ukraine. This could happen due to the increase in production costs.

This was stated by the Vice President of the All-Ukrainian Association of Bakers, Oleksandr Taranenko, on the KYIV24 broadcast.

I want to note that the increase in the price of bread and other bakery products is a consequence of the increase in production costs. It is not about an increase in profitability. It is only falling because we do not manage to compensate for the increase in raw material prices by raising product prices.

According to him, bakers currently have zero profitability due to a nearly 40% increase in raw material costs from May to June. Additionally, the energy situation adds to the expenses. Bakers are forced to work on generators, and this electricity costs 2.5-3 times more than from the grid. 

This leads to increased expenses and rising prices. There won’t be a sharp increase in prices in the near future, but considering the trends, we expect some increase in costs.