After the summer devaluation of the ruble, when the Russian currency got into the top 3 of the weakest in the world and became the world leader in terms of volatility, a tsunami of inflation is approaching the Russian Federation.
Years of “useful” sanctions for the Russian economy and the strongest blow to the entire financial system of the Russian Federation due to “SVO” promise the strongest acceleration of inflation since the beginning of the war.
In the last week, the ruble has dived at a tremendous speed: the dollar has risen in price to 90 rubles, and the euro has broken through the 100 mark. As the ruble weakens, retailers and distributors of goods – from drinks to cars and household appliances – are preparing to raise prices.
Cars imported to the Russian Federation through parallel imports will become more expensive by 15-20%, predicts GC “Autodom”. New price tags will appear in dealerships in one or two months, when the small stocks of cars purchased at the previous rates run out.
Juices and soda will jump at least 10-20% from August 1. PepsiCo and Sady Pridonya have already notified retail chains of the price increase. Maxim Novikov, Head of the Soyuznapitki Profile Association speaksthat one of the largest countries in the world over the years of independence has not been able to establish the production of its own concentrates and purees. Russian juice producers account for 70% of their prime cost on imports of these groups of goods, so any currency fluctuation is immediately reflected in their activities.
Home appliance suppliers have warned retailers of 10-15% price increases.
Apple electronics and other foreign brands may rise in price by 10-20%. And this is still an optimistic forecast, says Eldar Murtazin, a leading analyst at Mobile Research Group: the mass import of gadgets is paralyzed, stocks in warehouses are scanty, and as soon as they are empty, prices will fly up.
Holidays in Turkey for citizens of the Russian Federation, according to the Alliance of travel agencies, has already risen in price by 20-70%. However, by the end of the year, prices may rise by another 40%.
Egor Susin, Managing Director of GPB Private Banking, believes that the Central Bank will respond to the inflation surge by raising the key rate, and the market expects it to rise by 75-100 basis points at once. Nevertheless, the effect of the devaluation will inevitably persist for a long time: even if the ruble strengthens, importers will include higher levels in their prices.
Earlier it was reported that the Russian authorities self-confidently plan to create a new currency to “compete” with dollars and euros.
Meanwhile, at the Central Bank of the Russian Federation soothe population that the “floating” exchange rate of the ruble is a boon that allows the economy to absorb external shocks.
Author: Anastasia Yugova
2023-07-18 16:55:06
#Russian #Federation #cover #tsunami #inflation #happened #beginning #war
