MOSCOW, August 21. /TASS/. The Russian Ministry of Agriculture denies information about a considerable rise in bread prices in Russia and expects bread price dynamics not to be above the overall inflation level this year, the ministry’s press service said.
"Disseminated information about the significant rise in bread prices has nothing common with reality. The Russian Ministry of Agriculture expects the bread price dynamics this year will not be above the overall inflation level," the ministry informed.
According to the ministry, self-sufficiency of Russia in terms of grain is much higher than domestic needs (185.4% as of 2022 year-end). Food grade wheat prices are now lower than in the like period of 2022 amid the record-high harvest gathered last year.
Furthermore, the wheat and rye-wheat bread prices did not actually change either in the wholesale or in the retail segment over the last year. Flour prices of manufacturers are now approximately 15% lower than a year earlier.
"The ongoing smooth rise in grain prices will not have a material effect for bread and bakery production cost. It is worth to note that other components account for the main share of production costs in this segment, including electricity, logistics, and equipment components," the ministry added.