The profits of large retailers could advance this year by 15-20%, following the VAT cut on food from 24% to 9%. The increase in consumption and the change in margins could account for the growth.

However, the decrease in food prices will only be short-term and circumstantial, according to KeysFin, quoted by Agerpres. The VAT cut on bread has produced the same contradictory results, said the company’s analysts. Some products were cheaper, others not.

They estimate that the same phenomenon will take place on June 1. The prices will go down in the short term, then they will slightly go up, in the medium and longer term. However, the VAT cut will have positive effects in stimulating consumption, analysts said.

editor@romania-insider.com