The acceleration of inflation is a consequence of stricter taxation

According to official statistics, the consumer price index (CPI) rose by 3.3% in March of this year. In comparison, the CPI increased by 2.5% in February and 1.7% in January, indicating an acceleration in inflation.

Moreover, an analysis of the 3.3% cumulative index reveals a notable disparity in price increases across different product groups. For example, prices of food and alcoholic beverages increased by 5.4% compared to March last year, cigarettes by 5.1%. Services such as healthcare, transport and education rose by 3.5%, 3.7% and 7.8%, respectively.

The picture is also alarming with regard to the prices of essential goods. Bakery products and cereals saw a price increase of 1.7%, while bread prices rose by 2.2%. Prices for oil, fruits, and vegetables surged by double-digit percentages. Interestingly enough, prices for hairdressing services increased by 13.8%, and a sharp increase of 6.9% was observed in January compared to December, along with the taxation policy in this sector.

To maintain objectivity, it is important to acknowledge external inflationary pressures as a contributing factor to price increases. However, in cases like the rising cost of hairdressing services, one must question whether the price hikes are directly linked to tax administration practices.