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The price of bread does not fall due to the increase in electricity tariffs and the cost of rent

In the first half of the year, bakery consumption fell by 15%, according to Aspan. | Font: Andean

Bread prices in some establishments have increased by 20% in recent months, warns Peruvian Bakery and Confectionery Entrepreneurs Association (Aspan)despite the fact that these months also recorded a drop in its main input.

In July, the price of wheat, which is used as a raw material for bread, fell by 11% in July and by 4.6% in the first days of August. However, bread prices are still higher than before the pandemic.

According to the newspaper Gestión, based on the price change in the Technical Report, the price bread and grain prices rose by 1.35% only in July, and now in bakeries this product is sold at a price of 0.35 to 0.40 s., and in supermarkets it reaches from 0.78 s. per unit or 1.15 s. for a loaf

Why hasn’t the price gone down yet? Aspan notes that the price of wheat flour is not the only factor that is taken into account when determining the cost of bread.

Pio Pantoja, president of Aspan, clarified that bread price It is based on 17 components, including wheat flour, sugar, water, labor, electricity and rent.

The last two components mentioned, electricity tariffs and the cost of rent added to wages and gas, are the components that currently carry the most weight in the cost structure.

Until just last month, INEI data indicated that prices for electricity residential property increased by 0.4%, while rent increased by 0.8% due to the appreciation of the currency.

Given this rise in prices, they indicate that consumption in bakeries fell by 15% during the first half of the year, and about 600 bakeries were forced to close.

Source: RPP

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