The government of North Macedonia has decided to limit the gross profit margin to 102 product groups, or more than 1.000 food and non-food products.
At a government session in Skopje, it was decided that the gross margin on eight basic food products would be limited to five percent: milk, bread, type 400 and 500 flour, eggs, edible oil, yogurt and sour milk.
The margin on meat and meat products, sugar, dairy products, margarine, butter, canned vegetables and fruits, beans, rice and pasta is limited to 10 percent.
The margin on fresh fruits and vegetables, detergents, baby food, diapers, soap, toilet paper and the like is limited to 15 percent.
Deputy Minister of Economy and Labor Marjan Risteski said that the decision obliges all retailers to have at least 70 percent of these 102 product groups on their shelves.
In addition, a decision was made to set the highest prices for eight groups of basic food products, with the highest prices set as of February 1, 2025.
"Our expectations are that with these two decisions, the prices of basic food products will be reduced by an average of about 10 percent, except for eight basic food products - milk, bread, type 400 and 500 flour, eggs, edible oil, yogurt and sour milk, which are expected to remain at the same level, that is, they will not increase or will have a minimal decrease," Risteski said at a press conference.
Both decisions enter into force the day after their publication in the Official Gazette and will last until April 30.
After citizens boycotted stores twice due to high food prices, the Government tasked the Ministry of Economy and Labor with preparing a draft decision to limit the gross margin to 10 percent on some basic food products, hygiene products, and baby food.
This decision was based on a six-month report by the State Market Inspectorate, which found that retailers have over 20 percent margins on basic food products and over 30 percent on personal hygiene products, while importers and distributors have recorded margins of up to 50 percent.
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