Inflation in Russia hits record, gasoline increased by 10%
By the end of may inflation expectations (forecast of how prices will change in the next 12 months) increased to 8.6% from 7.8% in April and 8.5 percent in March, according to the Central Bank of the Russian Federation. Already, according to Rosstat, in the past week, granulated sugar went up by 1.4%, millet — by 0.7%, chickens — by 0.4%, mutton and tea — 0.2%. While eggs became cheaper by 2%, buckwheat — by 0.8%, frozen fish, pasteurized milk, butter — by 0.2—0.3%. Overall for may 2017 inflation was 0.4% and rise in petrol prices was 1.9%.
At the same time, the rising cost of petrol increased by 5-10% compared to the data of Rosstat becomes a different question – how do they think? The main failure in the proposal has arisen due to planned repair work on NPZ “Rosneft” and the demand for other points not covered by the fuel from other gas stations. Thus, the situation is planned, but the reaction to it is very emotional, and a meeting of oil companies with the representative Minister Dmitry Kozak and the promise not to increase prices next is the usual attempt to calm the population living on the principle – “tomorrow war”.
If the repair will last for another week, and other refineries will begin planned operations at the production facilities, the Central Bank will have to rewrite the inflation rate from 4% to 4.2% due to a jump in prices of all goods and services. One is due to the effect of gasoline prices, and on the other – due to the effect of those prices that affect gasoline prices. Thus, the government’s plans to reduce the inflation will have to adjust, and to reduce the recurrence of such a situation to consider the mechanism for business to establish fuel reserves and building refineries in the regions with increased sensitivity to such changes.
The head of the analytical Department of the company,
“International financial center”