Cabinet of Ministers: the Rise of Food Prices in Russia is the Result of the Greed of Retail Chains and Producers
OREANDA-NEWS. Nobody is completely satisfied with the result of food price control in the Russian Federation. But without these measures, it would be necessary to discuss the explosive uncontrolled rise in prices, and not the effectiveness of the measures taken. This was announced by the Prime Minister of the Russian Federation Mikhail Mishustin during his speech with the annual report in the State Duma on Wednesday, May 12.
The head of the Cabinet noted that due to the coronavirus pandemic, the risks of macroeconomic stability have increased, and low interest rates and unsecured money in the market have accelerated inflation in the world, including increasing the cost of food.
Mishustin believes that the greed of some manufacturers and retail chains has become one of the reasons for the rise in food prices in Russia. However, the government has the necessary tools to moderate the appetites of those who profit from the rush demand, the head of the Russian government added.
According to Mishustin, many entrepreneurs have raised prices on the domestic market following the world prices, so as not to lose profit. And the country's success in building up its export potential turned into imported inflation. This led to an increase in prices within the country and, above all, for socially significant goods, the head of government noted.
He added that domestic producers should earn on exports, but not to the detriment of the interests of Russian buyers.