Peculiarities of inflation in Russia

News and Society

Inflation is a long andrelatively steady rise in prices for all food and non-food products and services. This process of depreciation of money, which occurs as a result of overflow of channels of circulation of money supply. As a rule, the purchasing power of money depends on it. Each country has its own peculiarities of inflation. In Russia, for example, at the moment there is a stable level of 6.6%. The consequences of the price increase may be the degradation of the national economy, the decline in production, the growth of barter transactions, social tension, lack of trust in the government, and, of course, a slowdown in economic growth.

peculiarities of inflation in Russia

The causes and peculiarities of the manifestation of inflation in Russia are the following:

1) Let's start with the demand inflation that occursdue to the fact that there is a lot of money in circulation, and production at that moment is still functioning, that is, it does not have time to react to sudden changes in demand. The consequence of this is the excess of demand over production capabilities, which is why prices are rising.

2) The next reason for the growth in the money supply is the emissions that are being made by the government, as the federal budget is not enough for government spending.

causes and peculiarities of inflation in Russia

3) Inflation of costs. In it, growth is accompanied by the fact that the costs of production are constantly growing, and most of all this can be seen in the considerable costs of paying workers wages. Therefore, in order to maintain the former price, producers raise the prices of their products. In this case, there is a need to raise wages, because more money is needed to buy more expensive products, and this already entails another increase in prices for products, forming a kind of vicious circle. All that is listed above, you can predict, if you take into account the specifics of inflation. In Russia at the moment, such a situation is not expected. So say the experts.

Analysis of inflation in Russia at the momentshows that in 2013 economic growth will slow down significantly, which, strictly speaking, will help to more effectively control price growth. Now it is 6.6%. This increase occurred in 2012, that is, 0.5% more than in 2011. Now I would like to say about what features of inflation in Russia have the most notable manifestation. So, the prices for food products are growing, by about 0.9% per month, and for the rest of goods - by 0.3%, while services are becoming more expensive by 0.4%.

analysis of inflation in Russia

As a result, we can say that the featuresinflation in Russia show that at the moment the price increase slightly exceeded the forecasts of scientists for this year. But, nevertheless, despite this, prices do not increase as quickly as it does in some countries, so there is nothing to worry about at the moment. In addition, it is worth considering that inflation in our country has stably maintained at the same level for almost twenty years, so a small increase in prices does not entail serious consequences.

Comments (0)
Add a comment