In their analytical report titled "Inflation: a concise overview," experts from the Center for Macroeconomic Analysis and Short-Term Forecasting (CMASF) propose temporarily freezing prices on vital products such as meat, sugar, fresh vegetables and fruits, as well as eggs, bakery, and potatoes to contain inflation, which reached 9.3% annually by mid-July, reports Izvestia.
According to the head of CMASF, Dmitry Belousov, current factors slowing down price growth, such as high interest rates, increased population savings, and ruble stability, have a temporary nature, and without additional measures, inflation could accelerate.
Experts warn that the lack of compensation for producers during the price freeze may lead to shortages of goods, a decrease in product quality, and growth of the shadow economy.
Unsuccessful attempts to regulate sugar prices since the beginning of 2021 led to a retail shortage of this product and a sharp increase in wholesale prices in early 2022 by 60%, from 50 to 80 rubles per kilogram. In a matter of minutes, sugar disappeared from store shelves, and retail prices rose above 100 rubles per kilogram. As a result, sugar price regulation was discontinued (see Growing demand and prices for sugar: an ongoing story).
