In an attempt to prevent speculation over food prices in Bulgaria, Economy and Energy Minister Petar Dimitrov suggested that his ministry show the “real” prices of commodities on a weekly basis. Dimitrov gave the statement on August 24; the next day he received the support of Prime Minister Sergei Stanishev who said that “controlling the prices and showing how they change is not socialism, it is just showing the difference between the wholesale and retail price of a given product. This idea is aimed at giving information to the consumers, but not an attempt to restore socialism.” Stanishev was referring to comments in Bulgarian-language media that both he and Dimitrov belonged to Bulgarian Socialist Party.

Over the next few days Dimitrov disclosed more details about his idea. “My intention is not to define any price but to show people what the real value of something is,” Dimitrov told Bulgarian-language 24 Chassa daily. Dimitrov suggested that information about the prices of 20 to 25 food items would be gathered from the markets of 10 to 15 of the big cities in Bulgaria. This information would then be analysed using a pre-defined methodology and published. According to Dimitrov, this would allow people to see which shops were speculating with the price of food and the difference between the prices calculated by the state and those on the shop shelves.

He did not specify what the methodology would be used.

Later in the week, Dimitrov asked the Consumer Protection Committee to work out the methodology; the number commodities that would be monitored was reduced from 25 to 15 but still included meat, milk products, bread and cooking oil products.

What sounded logical in Dimitrov’s words, however, was rejected by various professional organisations of food producers. All of them shared the position that “showing” the prices on a weekly basis had no point because the prices depended on various indicators such as electricity and oil prices which changed every day and the people would not get the real picture.

According to Bozhidar Danev, chairman of Bulgarian Industrial Association, “the real prices of commodities are the prices defined by the market, not by some institution”.

“The prices calculated by the ministry will not show the market prices of commodities,” Danev told a news conference on August 27.

What the Ministry should do, according to him, was to show the prices charged by various producers so that consumers could see how the prices changed in the shops and make their own choice. This idea was rejected by Dimitrov who, later in the day, told the media that the list of prices would be available only online and would not name the traders who considerabling inflated prices because this was commercially sensitive information and the companies could sue the ministry.

While Dimitrov and the producers argued about the idea and whether it had a point in a market economy, prices of the basic foods continued to rise on an almost daily basis.

According to data from the state committee on wholesale markets, the wholesale prices of the most popular yellow cheese, Vitosha, and Kaliakra cooking oil had increased by 4.7 per cent and 3.5 per cent, respectively, to 8.68 leva for one kg of yellow cheese and 2.35 leva for a bottle of cooking oil. In Sofia, one kg of Vitosha yellow cheese was sold by retailers for between 9.02 leva and 12.90 leva a kg, a survey conducted by 24 Chassa showed. Kaliakra could be bought at prices of between 2.34 leva and 2.85 leva a bottle. In Varna, on the Black Sea coast, the price of Vitosha was 10.80 leva a kg, while Kaliakra had the highest price of anywhere in the country at three leva a bottle.

Wholesale prices of flour and sugar had increased as well to 0.81 leva a kg of flour and 1.53 a kg of sugar. Retail prices of flour in Sofia, according to 24 Chassa, were around one leva a kg and sugar was being sold at a price of between 0.84 leva and 1.72 leva for one kg.

Another price hike is expected in September, according to analysts, because of the bad harvest and the increase in the price of energy. This, however, will not change the situation in Bulgaria which will continue to be the country with the lowest food prices in the European Union, together with the lowest salaries.