The head of the Competition Council says he is consideringrevising the law that regulates relations between retailers andproducers in the agri-food sector - which everyone saw as a promisefrom the authorities that food would become cheaper.
After nearly one year since the enforcement of the new law infood retail, which regulates more strictly relations between thebig store chains and their local suppliers, the effects of thelegislation change are non-existent on the market. BogdanChiriţoiu, chairman of the Competition Council (CC) and one of thekey people involved in this project, admits that there are noeffects, but says Romania's inflation problem does not lie withfood prices, but with regulated prices, such as those of energy andgas. The Competition Council does not, however, have any power tointervene in the mechanism of regulated prices.
The annual inflation rate climbed in August to 7.58%, the highestlevel of the past two years, show data from the National StatisticsInstitute (INS). The VAT hike from 19 to 24% caused the Romanianeconomy to have the biggest inflation in the EU. The head of theCompetition Council points a finger at market regulatory bodies andsays the "good news" is that the price of food is rising at a lowerpace than production costs.
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