"Three reasons why prices should not increase"

"Three reasons why prices should not increase"

BELGRADE -- Rasim Ljajić says there are "three reasons why prices should not increase - low purchasing power, good agricultural year, and crisis in EU-Russia relations."

According to the deputy prime minister and minister of trade, "prices are being formed freely on the market and the government cannot impact this, but it should contribute to the overall economic activities because trade is the mirror reflecting the state of the economy."

Economic activities are still poor, salaries are low and unemployment is high, which also affects the trade sector, Ljajić told TV Pink on Wednesday, listing the reasons for prevention of price hikes.

Another reason is the fact that Serbia has a good year in terms of agricultural product crops, and the third reason is the crisis between the EU and Russia, which will lead to a surplus of food products on the European market, and the fact that the EU is looking for alternative markets, Ljajić said.

Ljajić recalled that there are ten major retail chains in Serbia which hold a stake on the market to the total of 68 percent, but the competition is weak, which is why the arrival of new trade and store chains is necessary.

He confirmed that "the arrival of the German global supermarket chain Lidl is beyond doubt now," but that "formalities on the local level need to be completed in connection to the purchase of locations in several municipalities and cities."

Asked about the export of local food to Russia, Ljajić replied that a short-term export increase is possible, "because the existing capacities have not been used up to the full extent, and added that the foreign exchange deficit would thus be reduced while...