Economist explained reasons for inflation in Russia

Economist Sergey Hestov called one of the reasons for inflation in Russia, the government’s actions associated with increasing duties and the introduction of export quotas. In a conversation with “ribbon.ru” he stressed: despite the fact that in the moment it contributes to the braking of inflationary processes, such a policy creates problems “literally next year.”

The inflationary expectations of Russians for the next year in December updated the maximum of February 2016, reaching a record 14.8 percent. The growth compared with November amounted to 1.3 percentage points. This is stated in the study “Infomant”, which was prepared on the request of the Central Bank.

Actions and Consequences

Hestov noted that there are quite a few reasons for what is happening and not all of them lie on the surface. In part, according to him, the current situation is explained by rather high inflation in world markets, which began in 2017 and since then only accelerated.

“In Russia, a noticeable part of the agricultural productions, especially in the segment of cereals, sunflower work on the external market, respectively, the total price increase in the world has exported more attractive for them than the domestic market. This trend was imposed, naturally, and the weakening of the ruble, Because prices rose. The government, in turn, is trying to fight this increase in export duties, the introduction of quotas: That is, it is possible to sell abroad only a certain amount, but not more. The problem is that the braking of inflation is only in the moment, creating problems Already literally the next year, “the economist said.

He explained that with the introduction of quotas and duties for the next year, manufacturers simply plant less conditional wheat, but more of what does not fall under restrictions, which creates only more combleces for the consumer.

“In addition, there is also inflation costs, – added Hestov. – Municipal payments, electricity, transportation are growing. Especially this is noticeable for traditionally inexpensive goods, where transport costs are instantly converted into price increases for the consumer.”

Earlier, an economist, a financial analyst, a former adviser to the Minister of Economic Development Evgeny Nadorshin, stated that the main causes of the sharp growth of inflation are external factors, such as price increases in foreign suppliers, as well as the lack of town year.

/Media reports.