Major Russian manufacturers of bread and bakery products have informed retailers about a price increase of 10−12% effective from March 1. Reports biz.nv.ua. This information is shared by Kontakty.UA.
This is also noted by The Moscow Times.
Among the reasons for the rising prices of bakery products, manufacturers cite the increased costs of warehousing and transportation logistics, higher tax burdens, and rising raw material prices, among others.
“In the case of objective reasons for the increase in procurement costs, price indexing will occur ‘smoothly and gradually,’ particularly by restraining markups on the most demanded social bread items,” the article states, referencing the management of the retail companies association in Russia.
It is noted that the average markup on the most affordable wheat bread items in large retail chains is around 5−7%. According to the Russian Bakers' Union, the average production cost increased by 27% in 2024.
“Loans at current rates have become unmanageable; high profitability is required to service them, and ours is just a few percent,” quotes the president of the union. “Additionally, there is a noticeable staff shortage, reaching up to 40% of the workforce in some enterprises.”
According to Rosstat data, as of February 10, retail prices for rye bread have risen by 1.87% since the beginning of the year, while bread and products made from wheat flour have increased by 1.62%. The overall consumer inflation during this period was 1.53%.
As reported, in February, the Russian Central Bank significantly raised its inflation forecast and maintained a record key interest rate.