In 2019, inflation in Russia will gain momentum

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This year Russia promised inflation due to the increase in the VAT rate from 18% to 20%, and also due to other factors. The costs of manufacturers and sellers grow, and they are usually passed on to the consumer, he will pay for all legislative initiatives. But this time we are talking about a universal increase in prices for everything, from food to service local and global nature. The task of the manufacturer to raise the price, reduce costs, and it does not scare the buyer. And it looks like it worked.
Over the last week, everybody spoke about the pack with nine eggs instead of the usual packing of a dozen. As grounds for the introduction of such a product was given a lot of arguments from storage optimization to calculate the value, but the fact remains: in order not to lose the buyer and not lose earnings, rewritten packing capacity, not the price tag on the product.
This step is called differently- found the term “stringplay” (from the English. to shrink, reduce), is the concept of “downsizing” – turbocharged version. Like any name, the meaning is the same – reducing the weight (or volume) of a product without changing the price. Milk can be packaged in 950 ml now already packing for 870 ml or 910 ml. Visually they are exactly the same as litre, the price of the former. But it just seems that nothing has changed – really changed very much. Reduced packaging concerns not only food, but household chemicals, for example. A liter of gasoline at the pump, however, is still equivalent to the correct liter, but there may be something to think of.
It’s not new. Such changes in the consumer market began in 2015 and has just reached a new level. The average overpayment for the same consumption basket as before (milk bottle, stick of butter, cheese, bread, sausage) may be from 15% and more. Food inflation in official value will remain unchanged because the calculation of “locked” under a different packaging. Hidden inflation will make not less than 10%, and in fact 15-20%. This is what everyone will be silent, but everyone will surely feel on your wallet.
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Anna Bodrova,
Senior analyst at information-analytical center,
Alpari