Bread Prices to Rise by 20% Due to Restored VAT in Kyustendil

• Bread prices for end consumers will increase by at least 20 percent due to the reinstated VAT, as stated by the manager of the largest bakery in Kyustendil
• The price increase is set to take effect from January 1, 2025, when the VAT rate was reinstated
• The current price does not yet factor in the increased costs of electricity and gas, as well as higher insurance burdens
• Despite the price increase, bread remains the cheapest and highest quality purely Bulgarian product, according to the bakery manager
• The demand for bread might decrease due to the higher prices for end consumers
• The delivery price of bread and snacks has been raised by 20 percent, according to the manager of a family food store
• Store markups have not been increased, and customers are aware and informed about the reasons for the price hike
• The store manager does not expect the price increase to affect the demand for bread and snacks, noting that while there is initial dissatisfaction, consumers typically adjust to price increases

Source: bta.bg

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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