Russian economy meltdown as potato prices soar 167% | World | News
Vladimir Putin was warned that Russia was facing an economic crisis as the potato prices increased and could not meet high demand. Potato prices have increased at a rapid rapidly increased 167% during the last year and pointed out the most important increase between foodstuffs. The Russian President confessed in May: “It turned out that we have not enough potatoes. [President of Belarus] Alexander Grigoryevich Lukashenko. ‘We have already sold everything to Russia,’ he said.
The rising cost of this staple is attributed to bad harvests that reduce materials. The households that combine this are typically directed to the option of food options. Andrey Sizov, who is an expert in Russian commodities, said that he saw that prices increased due to scarves, eggs and meat.
He said Telegram: “My speculation is that the supply has fallen and in fact the demand has fallen a little.
“Potato is not an expensive food. In the previous two years, they were poor Russians who made more money. So they can consume something else – for example less potatoes, more meat and butter.”
As food prices increase and labor shortage continues, inflation remains stubbornly high and causes significant cracks in the economy.
Economy Minister Maxim Reshetnikov has recently warned: “Basically we are already on the verge of falling into a stagnation.”
Carnegie said that Alexandra Prokopenko, a man of the Russian Eurasian Center and Moscow, a former advisor to the Central Bank of Russia, said that he put pressure on the economy.
“The slowdown of economic growth with high inflation leaves Russia close to stagflation.”
However, as the sanctions continue to bite and the expensive conflict approaches the fourth year, Putin’s economic revival strategies are limited.
Prokopenko explained: “The Central Bank can reduce interest rates. However, this imposes another increase in inflation. Another option is that the government increases expenditures, but this is higher than encouraging prices.
“Protectionism is another option. However, it only works at the expense of consumers. In other words, ordinary Russians who will feel the results – increasing prices, falling income or less choice on the shelves.”
