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Gov't says there's no reason for bread price rises

ZAGREB, Feb 28 (Hina) - The Croatian Government strongly believes that there is no reason for raising bread prices, Prime Minister Ivo Sanader said at the start of a government session on Wednesday.
ZAGREB, Feb 28 (Hina) - The Croatian Government strongly believes that there is no reason for raising bread prices, Prime Minister Ivo Sanader said at the start of a government session on Wednesday.

Commenting on announcements by some bakers that it was necessary to raise bread prices, Sanader said that there was no economic justification for such a move.

Last year's wheat was purchased at the price of 0.85 kuna per kilogram, which was 15 percent lower than wheat prices from previous years, and the fuel used by bakeries is also cheaper now than last year, Sanader said.

In addition, prices of other factors in bread production, such as energy, water and additives, have not risen.

According to Sanader, major store chains also oppose bread price increases.

"We are on the free market, producers can decide on their own whether they will raise the bread price, but the public must know that there are no economic reasons for that," the premier said.

The government also sent to parliament amendments to the law on fertilisers and soil improvers with the aim of adjusting the Croatian legislation in this sector to the European Union directives.

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