Natalia Shagaida: “Prices appreciate the most for products which are rarely exported”

Natalia Shagaida, Head of the Agrarian Policy Department, Gaidar Institute told the Agroinvestor, that prices of goods which were rarely exported, such as potatoes, cabbages and carrots, appreciated the most. Natalia Shagaida commented on President Vladimir Putin’s statement at the annual press-conference that Russia should return to the inflation target of 4%.

“Inflation is not imported directly. It is not that simple. Certainly, Russia imports primary products for production and on the back of appreciation thereof prices increase even for those products which are produced solely for domestic needs. In case of a close-circuit economy, the level of domestic prices may be higher than on external markets and it is far from certain that no price rises will occur,” the expert says.

According to Natalia Shagaida, in this case it will be actually impossible to tame increases in prices because production comes to a halt. “Open economy, competition between manufacturers and sellers, as well as growth in prosperity of Russian citizens are better than restrictions and closed economy. Otherwise, it is dead end,” Natalia Shagaida believes

Monday, 27.12.2021