Friday, February 13, 2009

Ministry of Agriculture opposed the freezing of prices for products.

Food prices in Russia do not need to freeze. With such a statement was made by the Minister of Agriculture Alexei Gordeev, transmits "Interfax". In late 2007-th and the beginning of 2008, the government struggled with the growth of consumer prices is freezing.
According to Gordeyev, the State should not freeze prices, and through the mechanisms of anti-monopoly and tax regulation to prevent excessive growth in the production of value-added products.
Recall that inflation in Russia in January and early February ahead of the growth in consumer prices last year. In 2008, inflation in the 12 months amounted to 13.3 per cent, which was a record since 2002. However, in 2007, the Government was also unable to cope with its own forecast for growth in prices.
In 2009, inflation is expected to be 13 per cent, but by the end of February could reach four per cent since the beginning of the year. Growth of prices in Russia are increasing despite the crisis, which in many developed countries has led to deflation.
February 11, reported that the Ministry of Agriculture began to develop indicative prices for six types of food. These prices must be economically justified and include a cost-effective for producers. Expected that the Ministry of Agriculture should be used when entering into contracts with food processors. Officials believe that this will help reduce the rate of price increases. For what products will be indicative price still unknown.

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