Alexander Knobel: “Russia succeeded in limiting partially the effect of the global surge of inflation”

Alexander Knobel, Head of the Foreign Trade Department, Gaidar Institute commented to the ТАSS, News Agency on the impact of the global inflation surge on the Russian economy owing to introduction of export quotas and damping mechanisms.

“Russia has taken measures to tame a surge of domestic prices for a number of goods (grain, ferrous metals and other) by means of export quotas and damping mechanisms. This made it feasible to limit partially the pass-through of soaring global prices into domestic ones,” Alexander Knobel noted. At the same time, the expert believes that such measures may affect domestic producers and lead to the reduction in their share on the global market.

Alexander Knobel points to the fact that changes in developed countries’ monetary policy suggest that the rate of inflation is going to decline soon in other countries as well because “demand-stimulating measures affected most tradable goods, thus leading to the global surge of inflation.”

“At the same time, it is to be remembered that countries have limited capacity to target the rate of inflation in respect of individual tradable goods,” Alexander Knobel added.