Bread prices likely to spike
With salaries needing to be raised in the industry in order to keep hold of workers, the price of bread could be hiked by 30% as of January, Hungarian daily Magyar Hírlap reported, according to index.hu.
Each bakery will have to make its own decision on raising the prices of its products, in order to finance the increased salaries in January, József Septe, president of the Hungarian Bakers’ Association, told Magyar Hírap.
Already there are 3,000 vacancies among bakers, as professionals, like other sectors, are increasingly working abroad for better pay. The average wage of a professional in the industry is HUF 160,000 monthly before tax, not much above the Hungarian minimum wage of HUF 111,000 for unskilled workers and HUF 129,000 for skilled workers.
Septe told the paper that the association has received a promise from the government that the VAT on bread could be dropped to 5% from the current 18% by 2018. He added that, nationwide, Hungarians operate a little less than 1,000 bakeries; Albanians operate almost 700 bakeries.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.