In Russia, the minimal food basket is limited to 15 kilograms of beef (with bones, of course), 14 kilograms of fish (frozen and not dressed), 115 kilograms of rye bread, 6 kilograms of millet, 150 kilograms of potatoes, 20 kilograms of onion and 730 grams of black pepper.
Photo: Alexey Kudenko
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Inflation Is More Dreadful for the Poor
The cost of the minimal food basket averaged 1,726.5 rubles as of late July 2007, having added 3.6 percent during a month. Russia’s Federal Statistics Service calculates this indicator to be aware of financial standing of the poorest. Indeed, the minimal basket includes food that would suffice to maintain existence close to physiological survival.
The annual minimal food basket of Federal Statistics Service is limited to 15 kilograms of beef (with bones, of course), 14 kilograms of fish (frozen and not dressed), 115 kilograms of rye bread, 6 kilograms of millet, 150 kilograms of potatoes, 20 kilograms of onion and 730 grams of black pepper.
Not surprising that the surge in consumer inflation registered in June and July of 2007 surged prices for the minimal food – the basket cost grew 8.6 percent over two months and 17.1 percent from early this year. Moreover, the annual growth showed better acceleration than a year ago. The indicator was 2.7 percent to 3.8 percent in February to April vs. the inflation of 7.5 percent to 7.8 percent, but it stepped up to 12.2 percent in July, well above the ordinary inflation of 8.8 percent.
In Russia, pensioners are the sole category of population with consumption matching the offer of this basket. Exactly for them, the fluctuations in minimal food prices are the most adequate indicator of inflation and life level. But the abrupt movement of these prices could trigger the feeling of complete price chaos amid the poorest.
www.kommersant.com
All the Article in Russian as of Aug. 08, 2007
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