Starting with August 15, the bread and bakery products will be by 15% more expensive, the Association of Bakers of Moldova and the Union of Legal Entities “National Association of Bakery and Grinding Industries” announced. The prices are raised owing to the situation on the home market and the external market too, IPN reports.

According to the data of the associations, the production of 80% of the bread and cakes generates losses. The situation is due to a number of factors that do not depend on the producing companies, such as the rise in flour prices, the increase in electricity and natural gas tariffs and the depreciation of the Moldovan leu, followed by the rise in prices of raw and auxiliary materials on the domestic and regional markets.

“The Association of Bakers of Moldova and the Union of Legal Entities “National Association of Bakery and Grinding Industries” assure that the rise in bread prices is an acute necessity and is a measure aimed at avoiding the bankruptcy of the given sector, given the losses generated starting with 2014,” reads the communique.

The two organizations bring together the largest bread and cakes producers of the country.