Consiliul Concurenţei, the Romanian competition council, is closely watching the government's plan to cap price markup in the food industry, according to the publication Romania Insider.
Head of the competition council, Bogdan Chiritoiu, has said that the body expects the government to share the food price cap draft law.
Experts from Consiliul Concurenţei are analysing the impact of a similar strategy in Hungary, Economica.net reported.
Food Price Capping
The country has already implemented a mechanism aimed at capping price markups along the production-distribution-retail chain for basic food items.
Chiritoiu agreed that the mechanism has kept prices of targeted food items "at lower levels compared to where they should have normally been", but also highlighted that it resulted in higher prices for other goods.
The new law seeks to expand the implementation of this price-capping mechanism to include all food products.
Draft Law Analysis
The body will analyse the draft law when the government shares it and put forward its perspective on the new law.
"I am almost certain that the government will send it to us for approval. The executive is not bound to take into account our opinion, but it must send us the bill for an opinion," Chiritoiu stated.
According to a recent report by NielsenIQ, rising food prices (33%), increasing utilities costs (20%) and the threat of an economic downturn (19%), are the main challenges currently facing consumers.
The report finds that a majority (67%) of surveyed consumers around the globe say they are likely to change or try a new brand because of lower pricing.
