Mass inspections of food prices by regulatory bodies in Bulgaria are largely symbolic and unlikely to yield concrete results, say economic experts. Speaking to NOVA NEWS, Mihail Krastev, Executive Director of the Union for Business Initiative, and Assoc. Prof. Kosyo Stoychev from Sofia University expressed skepticism over the effectiveness of such state-led actions in curbing inflation.

Krastev argued that proving an "unjustified price increase" is an intricate process with little chance of success in a legal setting. He emphasized that identifying such cases would require a detailed and multifaceted analysis - covering logistics, market dynamics, sector-specific trends, and regional pricing variations. In his view, these inspections are less about outcomes and more about sending a warning signal to traders not to make sudden and sharp price hikes, especially during a period of heightened public sensitivity.

Echoing the sentiment, Assoc. Prof. Stoychev noted that the state's recent interventions appear more reserved than in earlier phases. He pointed out that it is ultimately the consumer who drives pricing dynamics through their choices, and the most effective price control mechanism remains healthy market competition. According to him, when there are quality alternatives available, prices naturally find a balance.

Stoychev also criticized a recent union proposal to introduce a system of dual price labeling as unrealistic and counterproductive. He argued that every economic actor has the fundamental right to set prices according to its own strategy and cost structure. Instead of focusing on pricing policies of individual businesses, institutions should direct their attention to more serious concerns - such as potential cartel behavior among dominant players in the wholesale sector.

Krastev concluded that Bulgaria's greatest asset in maintaining price stability is its market economy, not regulatory pressure. He urged the state to support free enterprise through tax incentives and simplified administration, rather than interfering with pricing mechanisms. In his words, “Let’s not stand in the way of the market - let’s support it where it needs it.”

Source: NOVA NEWS interview