The rise in food prices roots in readiness of the nation to pay more for the products, Russia’s Vice Premier, Finance Minister Alexei Kudrin concluded.
Photo: Pavel Solov
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Nation Is Ready to Pay More
The rise in food prices roots in readiness of the nation to pay more for the products, Russia’s Vice Premier, Finance Minister Alexei Kudrin announced at the news conference in Moscow.
Exactly the money available to the Russians drives up the prices. “Citizens are ready to pay higher prices,” Kudrin concluded by results of the sitting of cabinet.
But even without the growth in food prices, the 2007 inflation would exceed the target of 8 percent, the minister specified. According to Kudrin, the inflation would be 9 percent even in the absence of food component.
Economic Development Ministry revised its 2007 inflation outlook only in mid-fall, raising the indicator from 8 percent to between 10.5 percent and 11 percent.
The prices surged 1.6 percent in October and gained 9.3 percent since early this year, the Federal Statistics Service reported.
According to Economic Development Ministry, the key reason of inflation is exactly the rocketing growth in food prices that are driven by imports reduction and surge in exports. Other reasons are the rapid growth of income of the population, especially of nominal salaries and general unwillingness of the nation to save money because of the negative efficiency offered by the most popular saving banks of the country.
www.kommersant.com
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