Raid uncovers unfair price hikes
A raid by competition authorities on the offices of two flour producer federations uncovered yesterday evidence of harmonized price increases being conducted among the country’s largest producers and bakeries, sources said. The inspections were made in a bid to to spot harmonized practices between wheat, flour and bread producers suspected of being involved in a price cartel, and are expected to continue in the near future. Based on initial indications, recent comments from the two associations warning of price hikes appear to have been taken literally and adopted by some members of the industry. Invoices showing the price paid for flour by several bakeries confirms this trend. On August 13, the Federation of the Greek Flour Industry said the price of flour products will head upward, in line with the cost of wheat. Additionally, the federation’s vice president, Dimitris Halatsoglou, repeatedly stated publicly that from September 1 there will be a 20 to 25 percent price hike in the cost of flour, adding that if conditions on global markets worsen, then the price hike could exceed the 40 percent mark. The Competition Commission is expected to meet next week to decide whether it will take legal measures preventing the price hikes and impose fines on those who unfairly raise prices at a rate of 5,000 euros per day. Sources said that authorities are likely to move ahead with legal steps against the two federations and its members found to have unfairly changed their prices.
