Inflation eats people, Government eats octopuses

Vesna Damcevska. / Photo: Free Press

The government should know that not everyone likes the octopuses it has ordered. Some live on simple bread and cheese, and in order to be able to provide even that modest meal, inflation needs to be curbed. It is not a simple formula

High dairy prices have united people like never before. On social networks there are mass calls for a boycott of the purchase of cheese and curd, special groups are created to make a connection between producers of agricultural products and among citizens, places with cheaper items are pointed out, even recipes are posted on how to make cheese or cottage cheese from homemade milk.

The cup of discontent has definitely overflowed with milk. The blood of the citizens boiled after the cow's cheese started to be sold at prices higher than 600 denars, when one kilogram of cow's cheese became 400 denars, a liter of permanent milk 70 denars, beef meat over 650 denars...

The government is also annoyed by the prices. Vice Prime Minister Fatmir Bitici says that they warned dairy producers several times to behave sensibly, Economy Minister Kreshnik Bekteshi is anxiously waiting for the Law against Unfair Trade Practices to be passed, but the fact is that now food is becoming unaffordable for an increasing number of citizens, and it is little consolation for they are the anger of the top government.

The fact that Macedonia has the highest inflation in the region shows that something is not right in our country, that is, that the Government has not succeeded in determining the measures. When the prices on the stock markets were rising, she limited the final prices of the products, and we are import dependent, so the measure turned out to be bad. Now, when the prices of food on the stock market are decreasing, there is a limited margin for only a small number of products. In such an environment, some food producers and traders have found a "village without dogs".

It is clear that electricity is much more expensive, on some days by 15 times more than in the pre-crisis period. It is clear that agricultural products also became more expensive, because oil and fertilizers became more expensive, the purchase price of milk also increased, transport and packaging also became more expensive, but if the Minister of Economy says that it is not fair to make profits in a crisis - it is clear that something stinks.

The government must find a way to curb inflation. It is not a simple formula. It should help both farmers and companies, especially around electricity, and maybe limit the prices of basic food products. Institutions are paid to carry out appropriate economic policies that will satisfy everyone - both farmers, companies and citizens, and crisis approaches are just a test of what they knew, that is, what they didn't know how to do.

Of course, the National Bank is also responsible for maintaining price stability, which has on several occasions increased the basic interest rate through which interest on loans and deposits should be increased, which should disincentivize taking loans in order not to create increased consumption , and on the other hand to stimulate saving. Although in theory this is a classic response to inflationary pressures, part of the expert public is worried that in this way citizens will have to pay back higher installments, as well as that at a time when feeding is becoming a problem for the majority of the population, saving is not an option. .

Definitely, in this time of high, double-digit inflation, the eyes of both the people and the companies are turned towards the Government and its policy makers. The government should know that not everyone likes octopuses, which it ordered. Some feed on plain bread and cheese. And if they manage to make ajvar at these prices, it will be a great hit. Honestly, those from the Government would also be better off eating ajvar with cheese. All research shows that it is healthiest for everyone to eat their own local food. So, healthier and smarter, maybe they will remember faster how to curb inflation!

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