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All news / Russia effectively curbing inflation, despite global trend, assures Kremlin

  • 30 Apr 2021, 10:34

Rising prices for food and other items stem from the current situation worldwide, but the Russian government has been able to curb this trend domestically, Kremlin Spokesman Dmitry Peskov told reporters on Tuesday.

Earlier, the Central Bank reported that inflationary expectations of the population in April rose to 11.9%.

When asked what can be behind those fears and how well-founded they are, the Kremlin press secretary recalled that this is chiefly the government's purview to deal with such issues.

But he noted that there are "certain global trends associated with the price hikes on food and other products."

"You know that these global trends have been curtailed in our country thanks to the work of the government, but it is still difficult to escape the global trend as such. But this is certainly one of the factors [behind rising food prices in Russia]," Peskov explained.

Earlier this month, Russia’s Economic Development Ministry reported that it projected inflation at 4.3% by the end of 2021, yet at the start of 2022, it is expected to return to the targeted level of 4%.

Rising food prices

In December 2020, Russian President Vladimir Putin called for the prevention of any situation where the nation’s residents lack enough money for food. He associated the food price hikes in particular with an attempt to align domestic prices to the global market situation, and asked to promptly respond to adverse movements.

A week later, Russia’s Industry and Trade Ministry, Agriculture Ministry, the country’s largest retail chains and food producers signed agreements stabilizing the prices of sugar and sunflower oil. Moreover, a bill on state regulation of prices for socially important goods was drafted and passed.