7 products that will rise in price in 2020

The content of the article

• Bakery products
• Alcohol
• Cereals and Legumes
• Milk and Dairy Products
• Sugar and sweets
• Fish
• Eggs and Poultry

In Russia, there is a gloomy tradition – price increases after January 1. This trend affects almost all areas of the market. Which products will rise in price in 2020 depends on many indicators – growth in the level of VAT, excise taxes, production costs.

Bakery products

The cost of production has increased since 2019. The reason was the rise in price of flour, electricity and gasoline, which together increased the cost of the manufacturing process. The price of black bread rose to 9.5%, rye – 7.7%. This trend will continue after the new year. Experts suggest an increase in value by another 5-10% in the next period.

Alcohol

Starting next year, the excise tax on grapes will rise to 30 rubles per ton, which will affect the cost of alcohol production. This is especially true for still and sparkling wines. On average, the national retail price of one liter of a drink of a domestic brand will increase by 40 rubles, of a foreign one – 50 rubles.

The rise in price will also affect vodka – a lower limit will be set for the cost of at least 320 rubles per bottle. Cognac will also add up to 15% in price. This is due to an increase in the cost of wheat, glass production and an increase in excise taxes on pure alcohol. The government attributes such measures to concern for people, an attempt to rid part of the population of addiction.

Cereals and Legumes

In recent years, the buckwheat sown area has declined markedly, so cereal prices are projected to increase to 15%. These rates are considered the highest in previous periods. Wholesale sales of rice, millet or oats will not change.

Milk and Dairy Products

On November 1, electronic certification of veterinary products was introduced. This can lead to the fact that stores will immediately use 2 accounting systems. As a result, additional costs will be included in the cost of dairy products, which will affect the consumer’s wallet. It is subject to preferential VAT, but an increase in raw materials costs will entail a rise in price of essential products. Major retail value growth expected after January holidays.

Sugar and sweets

Asking the question, what products will rise in price in 2020, one should not expect a very pleasant situation on the confectionery market. From the new year, palm oil is excluded from preferential VAT rates. After the holidays, the product will be taxed at a standard rate of 20%. This will entail a price increase of up to 7-10% for sweets, which include this ingredient – cookies, margarine, cakes, snacks, chocolates.

Excess sugar in the country forced the Ministry of Agriculture to decide to reduce the area for sowing beets. Analysts believe that this will lead to a rise in price of the product after the new year. The increase in value up to 5% due to an increase in excise taxes on carbonated drinks and juices.

Fish

Rising food prices will affect marine delicacies. In 2019, the seasonal catch of salmon, pink salmon, and chum salmon was halved. As a result, the cost of red caviar, fish increased to 25%. Experts predict that the rise in price in 2020 will continue. The retail price of inexpensive fish species will rise slightly – up to 3-5%.

In the second half of 2020, experts predict that prices will gradually decline. It is planned to increase the volume of fish catch. This will help stabilize the supply of seafood, caviar and other delicacies..

Eggs and Poultry

The rise in price of grain will entail an increase in the price of chickens. Eggs will not get cheaper either. The bird must be well fed, and the cost of feed is 70% of the cost of production. If you do not raise profits, then the poultry farms will become unprofitable, which after a while will lead to their ruin. Analysts predict an increase in the price of important food products to 12% after the New Year holidays. This phenomenon is explained by the fact that chicken meat is in great demand among consumers..