Estonia, Legislation, Markets and Companies

“Whenever the press publishes questionable materials, we analyse such allegations,” said the Director General of the Competition Board. He remarked, however, that he has not yet given orders to initiate proceedings.

Ots explained that the situation ought to become clearer by the end of the week and it would be too early to comment beforehand. At the same time he emphasised that there is nothing remarkable in analysing the plans to raise prices. “The Competition Board undertakes analyses on the basis of information published in the press on a weekly basis,” he pointed out.

Last Friday the Association of Bakeries announced, after having met with the producers, that the prices of bread and other bakery products would grow by 10-20 per cent in near future. The organisation explained the price growth with the increase in production costs caused by the increase in excise taxes on fuel and electricity and the VAT rate surge. The producers have also noted that grain prices have grown and expected to grow further.

Director of the Institute of Economic Research Marje Josing, on the other hand, asserted that the price of grain is only a pretext for bakeries to raise prices – flour only accounts for ten per cent of the price of bread and whitebread. She stated that the entrepreneurs' conviction that the time is ripe to raise prices is a much more weighty factor in the price growth.