Poor pay twice: price increases doubled in a week

At the end of June, the growth in consumer prices accelerated from 6% to 6.5% and became the maximum since 2016, according to Rosstat.

Over the month, the “broad consumer basket” grew by 0.69% (maximum since June 2012).

Over the month, prices for beets increased by 58.4%, carrots - by 37%, potatoes - by 20.3%, cabbage - by 14.3%. Prices for bread increased by 7.9% year-on-year, meat became more expensive by 11.5%, chicken - by 18.9%, fish - by 14.2%.

In general, food at the end of June 2021 was 8.67% more expensive than at the end of June 2020 (maximum since 2015)

Since July 1, electricity tariffs have increased by 4.3%, payments for wastewater have increased by 3.4%, and for water supply by 3-3.2%.

As a result, the growth rate of prices for the week from June 29 to July 5 doubled - from 0.23% to 0.46%.

It is also worth noting that at the end of June, consumer inflation, according to Rosstat, reached 6.4%.

Economist Dmitry Prokofiev is not surprised by this state of affairs:

“Well, what surprises anyone? Is that the confidence of the bosses that it is possible (and necessary) to circumvent the laws of economics and organize GDP growth so that business income (and production volumes) grows, but people's incomes do not.

First, you "support the domestic producer" - you give him money, protect him from competition and restrict people's incomes so that he earns more and "invests in production"

People have no money, they take loans at a rate much higher than the "manufacturer" received them

When you borrow money to “buy something,” you immediately spend it, and there is a shortage in the market.

The manufacturer understands that before increasing production in this situation, it is easier to raise prices, which he does.

If there is an opportunity to sell at a higher price without fear of competition, the manufacturer will do so.

And whoever has no money - he pays for everything twice.

(This, of course, is the most simplified scheme, but in general - everything is so)..."