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Bread Sharply Started Rising in Price

Bread Sharply Started Rising in Price
21.03.2008

"New wave of increase of the prices for bread began in Russia. In a matter of days at once in several cities it rose in price by a quarter. Other manufacturers also declared fast increase in cost of a product at 15-20%. Officials hope on "price freeze" of prices and protecting duties on export of grain. Independent experts are sure that such measures will not help and by the end of the year we shall face deficiency of bread", - "Independent newspaper" informs.

For example, on the 14th of March company "Vladkhleb" which bakes more than 80% of bread in Vladivostok increased the prices approximately by a quarter. Since autumn fuel in the area rose in price on 25-30%, wheat and a flour - on 20%. Businessmen raised the prices also for bread, otherwise trading would bring only loss.

In Altai region bread can rise in price on 20% already since April, 1. In Novosibirsk one of the companies rose in price on 5% in the beginning of March and planned one more increase in April on 10%. They are waiting in Murmansk area the rise in price of bread on 15%, in Dagestan - threefold. In Stavropol territory the prices have already grown by a quarter and in Rostov area - on 20%.

Minister of Agriculture Alexey Gordeyev declared yesterday that if prices for bread will raise, "then only within the limits of inflation in the consumer market". The government, we shall remind, has planned inflation of 8.5% on results of the year. Real rise in prices obviously do not correspond to "planned target" of the government on inflation.

- I do not understand how the government calculates inflation, - editor-in-chief of FORUM.msk Anatoly Baranov noticed. - Obviously, on phases of the Moon or on astronomical ephemeris. I am not strong in astrology therefore calculations of the government are not clear to me. I would enter two separate terms - "governmental inflation" and "real inflation". Our country is poor, we basically eat bread. Therefore if the price of the basic for the majority of the population product rises by a quarter real inflation on results of the year cannot be only 8 percent in any way. And in fact practically all other food stuffs rose in price already long time ago and not by a quarter, in times. It is very noticeable when you buy food one time a week - we eat in general one and the same but things for which we paid two thousand one year ago, today cost four. Here you are that real consumer's basket, not that one which is made by experts but the one which is chosen by the consumer. In fact gasoline rises in price, travel in transport, square meters and land. Even the toilet should be paid for and that it's price has risen also as though "by-product" should become more expensive after the "primary".

"There is grain in the country and we now feel ourselves confidently till a new crop", - Minister of Agriculture tried to calm the population.

It's a strange logic, - Anatoly Baranov noted. - The fact that there is grain does not mean yet that it will not be allowed to rise in price. Grain - the goods which is not perishable, is favourable to store it today, it's a very good investment. To the middle of the year it will not be possible to keep the price and bread-sellers will receive very good bonus on investments in grain. It is more reliable and more favourable, than any deposit. There will be no deficiency of bread, therefore it is strange that Minister calms citizens with the fact that bread-sellers will not stay without profit. While citizens who do not consume grain but use products of its processing, fail to make "deposit" - bread couldn't be stored for long. Therefore it is clear from whose pocket the income of dealers will be paid. The pocket of the official is always closer to a pocket of the businessman, than to a pocket of the consumer - it could be named economic law.

The head of the Ministry of Finance Alexey Kudrin, in particular, recognized himself that though the prices for the goods which "were frozen" in autumn did not change but, as businessmen refused to produce bread at own loss, "frozen" grades of bread began to be produced in smaller volume or disappeared in general. Other goods rose in price after the rise in price for grain all over the world.

- I shall repeat once again, there will be no famine as such, - Anatoly Baranov finished. - But the problem is that many people in Russia are catastrophically poor, according to Michael Deljagin about 15% of citizens even at an old price level experienced difficulties with purchase of food stuffs and by his estimations bigger part of population is compelled to save on food. It means that people eat basically not what their organism feels necessity for but what is possible to buy for their money - consequences are obvious, it is low life expectancy, reduced parameters of health, first of all of children. It is natural - in fact if instead of an apple the child is given a cracker, it is hardly adequate change. But social and economic mode in Russia is such that questions of health of the population, its life expectancy and so forth do not belong to priorities of authority. The authority counts balances, is proud of proficiency of the budget, gold holdings - and in the private of villas, cars, outfits and brilliants of "elite" women. It's an achievement for them , while the rest - simply boring statistics.

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