The rapid rise in food prices could force the Russian government to introduce food stamps for the country’s low-income citizens, Russian media reported.
This is better than simply giving away money that can be spent on other goods, said Valery Mironov, chief economist at the HSE Development Center for Economic Research Foundation.
As the expert explained, many countries are pumping money into their economies, which leads to an increase in prices for all goods, including food.
The Russian market depends on the world market situation, therefore, price increases have been recorded in our country as well.
The energy crisis will also affect the dynamics of food prices, Mironov said in an interview with URA.RU.
“Many enterprises producing fertilizers use gas and, due to its shortage and high prices, may simply close,” concluded Mironov.
The Central Bank of the Russian Federation came to the conclusion that by the end of the year inflation in Russia will grow to 7.9 percent. At the same time, it was earlier expected that it would not be higher than 6.2 percent.