Supplies of Chinese products are having a dampening effect on price growth in certain segments of the Russian market. However, it would be incorrect to say that Chinese imports alone determine inflation dynamics: the ruble exchange rate, logistics costs, fuel prices, business expenses, and the cost of borrowing continue to play a much more significant role. Olga Ponomareva, an expert at the Economic Policy Fund of the Gaidar Institute, spoke about this to RBC.
According to the expert, the impact of Chinese goods is most noticeable in the mass-market non-food segment—electronics, home appliances, clothing, footwear, and household goods. Fierce competition among suppliers and a wide selection of products limit retail markups and slow price growth. However, this effect is more often reflected not in lower prices for goods, but in the emergence of more affordable alternatives and a slower rate of price increases.
Another important factor is increased competition in the domestic market. The expansion of the supply of Chinese products prevents manufacturers and retailers from fully passing on rising costs to consumers. At the same time, in segments such as automobiles, equipment, and construction materials, this effect is largely offset by high logistics costs, the cost of credit, and existing regulatory measures.
“Chinese imports tend to act as a restraint on price growth rather than a driver of overall inflationary trends. Their impact is most noticeable in the mass-market non-food segment, where intense competition prevents prices from rising as quickly,” explained Olga Ponomareva.