Source Pravda.Ru

Strong price growth bankrupts Russians - expert

According to a recent forecast from the Russian Ministry for Economic Development, the poverty rate in Russia will grow by 1.4 percent in 2015 because of rising prices and reduced incomes of the population. The Ministry is known for its negative forecasts for the Russian ruble, economic stagnation and reduction of the standard of living. Pravda.Ru asked expert opinion from a member of the board of BKF bank, Maxim Osadchy. 

"We have seen a very strong growth in prices that followed the devaluation of the Russian ruble. Consequences of the currency crisis, sanctions, counter sanctions and war in Ukraine also play an important role. Most likely, the inflation figures published by the State Statistics Service are undervalued. This is especially true for capital cities, where dependence on imports is high. The ruble has collapsed twice, and we observe a twofold increase in prices on imported goods," said Maxim Osadchy.

Also read: Russia may feed the world, but not today

According to the expert, one does not see the process of important substitution in action yet, except for very low quality cheeses from Russia and Belarus. "The inflation rate in capital cities makes up tens of percent. Therefore, the reduction in real income of the population does not match the current trend, and we are to observe a significant increase in poverty."

Pravda.Ru correspondent asked the expert what decisions of the Ministry for Economic Development have improved Russia's living standards in the last two years. 

Also read: Will Russia be able to feed itself?

"In contrast to the Central Bank and the Finance Ministry, the Ministry for Economic Development does not have any leverage on economy. The ministry does not have the key rate. Of course, it should make prognoses, but the ministry can not do anything really," Maxim Osadchy told Pravda.Ru.

Pravda.Ru 

Read article on the Russian version of Pravda.Ru

On December 10, 1948 the Universal Declaration of Human Rights was adopted by the United Nations General Assembly, its thirty articles enshrining basic and fundamental rights guaranteeing dignity of the human person and equality for all, regardless of race, color, creed or gender. A pipe dream?

Human Rights Day: Let us hang our heads in shame
Comments
Putin makes first comment on Trump's Jerusalem decision
Putin makes first comment on Trump's Jerusalem decision
Ukrainian politicians and businessmen aim to visit Crimea
The Myth of the Gene: Genetics, Epigenetics and the Organism-Environment Loop
The Myth of the Gene: Genetics, Epigenetics and the Organism-Environment Loop
North Korea declares victory over USA
North Korea declares victory over USA
The Myth of the Gene: Genetics, Epigenetics and the Organism-Environment Loop
The Myth of the Gene: Genetics, Epigenetics and the Organism-Environment Loop
The Myth of the Gene: Genetics, Epigenetics and the Organism-Environment Loop
The Myth of the Gene: Genetics, Epigenetics and the Organism-Environment Loop
Human Rights Day: Let us hang our heads in shame
Some ideas about North Korea
USA looking for reason to see nuclear weapons in action
The Myth of the Gene: Genetics, Epigenetics and the Organism-Environment Loop
Putin makes first comment on Trump's Jerusalem decision
Putin makes first comment on Trump's Jerusalem decision
Turkish President Erdogan issues ultimatum to Washington and Brussels
Turkish President Erdogan issues ultimatum to Washington and Brussels
Turkish President Erdogan issues ultimatum to Washington and Brussels
Turkish President Erdogan issues ultimatum to Washington and Brussels