Skopje, 31 October 2024 (MIA) -- Today is the last day of the government's "fall consumer basket" market intervention, which has kept grocery costs down by capping profit margins on 73 food staples over the past month and a half.

During this time, wholesalers' and retailers' gross profit margins on select grocery items have been capped at 10 percent.

The market intervention was based on State Statistical Office cost of living data, which showed an increase of four percent in food costs between December 2023 and August 2024.

Prime Minister Hristijan Mickoski said the government would intervene again if prices skyrocketed.

"I expect that the chambers, sellers and producers will not go wild," Mickoski said. "If they do, we will react fiercely and defend the interest of citizens with all tools we have at our disposal," Mickoski said on Oct. 30.

On Oct. 25, Minister of Economy Besar Durmishi said the intervention had resulted in prices of essential food products dropping from 5 to 10 percent.

He said he did not think prices would jump again, given that the Unfair Trading Act, which bans unfair trade practices in the supply chain of agricultural and food products, has been in force since late September.

"If prices next month rise drastically, we will take more rigorous measures," Durmishi said.

According to the Federation of Trade Unions of Macedonia, which publishes monthly estimates of the minimum expenses for an average family of four in North Macedonia, the government's market intervention partially failed to produce the desired results -- because retailers evaded it.

Pointing to "the retailers' greed for profit that the state needs to rein in," unionists said that vendors, once they heard about the announced margin caps, rushed to raise prices of essentials before the decision came into force.

This was evident from the Federation of Trade Unions of Macedonia monthly calculations, they said. Their estimate showed that food costs, between August 2024 and September 2024, rose by 717 denars.

According to their September 2024 and October 2024 estimates, the "fall consumer basket" intervention resulted in savings of 965 denars.

The unionists said the government neeeded to include them in the policymaking process and impose stricter controls and fines for any retailer caught breaking the new rules.

Meanwhile, top government officials announced introducing temporary price caps to address soaring food costs ahead of New Year's Eve, Orthodox Christmas, and the Ramadan holidays as well. mr/