Large Romanian retailers warn that they will have to raise the shelf prices by another 10% if the cost of electricity, which accounts for a large part of their expenses, remains at current unprecedented levels in the coming period, according to Romania-Insider.
The statement is made in the context of the revised “cap and subsidy” scheme not including the retail industry among those industries subject to subsidized energy prices. The small retailers, however, fall under the category of SMEs, which makes them beneficiaries of subsidized energy prices.
“If electricity prices remain at the current levels, we will have to increase prices by another 10-15%, thus generating more inflation,” representatives of the large retailers told Profit.ro.
The average price of food goods increased by 19% YoY and 16% YTD as of September. Excluding the energy prices, they were among the main inflationary drivers that pushed up overall inflation to nearly 16% YoY and are responsible for the upward revision of the inflationary outlook recently announced by the National Bank of Romania (BNR).
“The major drivers of inflation over the coming month will be the faster growth rates anticipated for the prices of natural gas and electricity, as well as for food prices,” the BNR’s Board members reasoned on October 5 when concluding that the headline inflation will not stop rising until the end of the year.