Tuesday, March 10, 2009

The government has promised not to limit the prices of products.

The Government of Russia would not limit the prices of food, as this measure would have a negative effect on the formation of the value of the food basket. The statement was made first vice-premier Igor Shuvalov, RIA News. "Administration to impose a ceiling on any price - it can only worsen the situation", - noted the official.
At the same time, Shuvalov did not rule out that in the near future may be introduced by limiting the prices of medicines. According to him, the elements regulating the costs of medicines in Russia is already there, but this mechanism should be developed further.
Growth in food prices were one of the main topics of the meeting the Commission to improve the sustainability of the Russian economy on 10 March. During the first two months of 2009 inflation in Russia has exceeded four percent, significantly ahead of forecast of the government. In the face of financial crisis, reductions in enterprises and the reduction of wages, inflation is a major threat to the economy.
Earlier in the Ministry of Agriculture stated that work had started on the special indicative prices for six types of food. They should be used in contracting between producers and processors of products and the need to reduce the cost of final goods. However, the Ministry of Agriculture opposed the freezing of prices.
Recall that a price freeze on basic foods (milk, eggs, vegetable oil and corn) has used the government of Viktor Zubkov in autumn 2007 and early 2008. This measure allowed briefly to reduce the rate of increase in the cost of food, but then inflation has reached the previous level.

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