Head of the Central Bank Elvira Nabiullina in an interview with Komsomolskaya Pravda called the reason for the rise in prices in Russia. According to her, the whole thing is in the imbalance of supply and demand.
She also noted that it was dangerous to freeze prices for too long, because the deficit of goods can occur and the black market will develop. “Artificially understated price level does not create incentives for manufacturers so that they expand the production,” said Nabiullina.
She also remembered the times of the USSR when prices were officially fixed, but it was impossible to satisfy demand. According to the head of the Central Bank, currently a sharp rise in price of some goods is a temporary phenomenon. The Central Bank expects to reduce the dynamics of inflation in the fall of this year.
According to the results of June, for the first time in five years, inflation in Russia in annual expression exceeded 6 percent. This circumstance forced the Central Bank to tighten the monetary policy and for the third time in a row to raise a key rate, and for the second time – immediately by 0.5 percent.
Previously, one of the reasons for the increase in prices for almost all food products of the world was called a boom of vegetable fuel, the production of which began to actively engage in major energy companies. Products in all countries of the world can be even more expensive because of the program to combat climate change.