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Chill told, what will happen to food prices after freezing

Food in January 2021 year have become more expensive compared to the same period last year, I told ABF "Economics today» Doctor of Economic Sciences, Professor, former Deputy Minister of Agriculture and Food Leonid Kholod.

Chill told, what will happen to food prices after freezing

The increase in the cost of food in Russia amounted to 7,6% per year, which is in line with the general trend in the global market. The UN noted the increase in food prices to the maximum 2014 years of values.

Prices rose in response to global economic indicators

December 2020 Russia introduced a price containment mechanism due to the rise in food prices, however, some goods still increased in price.

The state has concluded agreements with manufacturers and retail chains to freeze the cost of food products. Indicative prices have been set, now they are controlled by the tax office.

“The cost of goods has changed due to inflationary costs, as food production became more expensive. High demand does not match the supply in the market. Business revenues dropped significantly in the pandemic year, Therefore, the rise in the price of goods was expected", Cold explained..

Rosstat noted, what in january 2021 compared to December last year, consumer prices increased by 0,7%. Acceleration of inflation caused by rising food prices - in January to December 2020 years they have grown 1% and 7,6% by January last year.

Fruit and vegetable products increased in prices most significantly - by 4,8% compared to December 2020 of the year. Since the beginning of the year, the cost of a tomato has increased by 14,6%, grapes - on 13%, carrots - 8,2%, potatoes - 7,1%, bananas - 6,5%, cucumbers - 6%, onion - 5,3%.

Chill told, what will happen to food prices after freezing

“Essential products always increase the most in price., however, they will always be in demand. Unstable foreign currency weakened the global food market, and Russia directly imports some goods.

Also, many domestic products are produced using foreign technology., where currency changes also affected. These factors significantly influenced the prices.”, - says Cold.

Rosstat told, that in January of this year also became more expensive chicken, Wheat flour, salmon caviar and mayonnaise 1,4-2,2%. Fish has become more expensive 1-1,3%, and with it canned meat for baby food, canned fish, ketchup, natural canned vegetables, chocolate, cereal flakes and oat flakes "Hercules".

sunflower oil in 39 grocery chains were marked by growth, at 39 - decreased, and still in 7 remained at the same level. Sugar has become cheaper 73 subjects, at 9 grew up and in 3 did not change. On average in Russia, chicken eggs became cheaper by 0,3%. Prices for millet and honey also decreased 0,6% and 0,1% respectively.

Cancellation of the freeze will not increase prices

Economic Development Minister Maxim Reshetnikov at a meeting with President Vladimir Putin noted, that the regulation of food prices is a priority, noting, that the measures taken to contain the cost were not enough.

"The cost of sugar, sunflower oil and other essential commodities grew at an accelerated pace, therefore, it was decided to cool the prices a little by freezing. However, this did not affect the further rise in prices for some categories of goods., - sums up Cold.

The expert believes, that after the cancellation of the price freeze agreement, there will be no sharp rise in the cost of food. To continue to regulate the balance between supply and demand is dangerous, as this can lead to a shortage of goods. The most effective could be the fight against the low solvency of certain categories of citizens.

Chill told, what will happen to food prices after freezing

“Now in Russia there are about 20 million people, who need to be supported, for example, by introducing ration cards. Prices can't be ordered to stop, but you can do this, so that they do not hit the wallets of the most vulnerable part of the population", Cold concluded..

The former Deputy Minister of Agriculture and Food suggested, what in 2021 year, food prices will depend on exchange rates, world politics and economics, as well as systematic overcoming of the coronavirus pandemic. Also, the traditional impact on the cost of goods will have the export of oil and other raw materials.. Most likely, during the year, the growth rate of food prices will not exceed the inflation rate.

Valeria Borisevich

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