What will be the rise in prices from January 1, 2020 in Russia

2024 Author: James Gerald | [email protected]. Last modified: 2023-12-17 14:00

With the coming of the new year, the Ministry of Finance is starting to implement new projects. 2020 is no exception. The Ministry of Finance has already prepared projects to increase profits from tobacco products, fuel, alcoholic beverages and many other goods. What will rise in price from January 1, 2020 in Russia?

Alcoholic beverages

Since 2018, there has been a campaign to increase the cost of alcohol. According to the government, the rise in prices will scare off a number of buyers and help rid a part of the population from the bad habit.

The Ministry of Finance has not officially announced how much the cost of alcoholic beverages will rise, but what will definitely rise in price from January 1, 2020 in Russia is wine. From the 1st date the excise tax on grapes is introduced. It will lead to an increase in the cost of wine and wine drinks by 15%. On average, experts say, a liter of wine will rise in price by 40 rubles.

The cost of other spirits will also rise. They plan to raise the minimum price for a bottle of vodka to 320 rubles, and for cognac to 420.

Why are prices going up? The excise tax on pure alcohol is becoming more expensive, and it is more difficult to produce glass and wheat.

Tobacco and electronic smoking devices

Following the logic that the more expensive a harmful product is, the less it will be bought, officials plan to raise prices for tobacco products. A 10-12% rise in price is forecasted.

Electronic cigarettes and vapes will also rise in price. An excise tax is introduced on them. Excise tax on liquid for vaping - 13 rubles per 1 ml, on devices for smoking - 50 rubles apiece. In proportion to these innovations, the cost of goods will increase.

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Food

Price increases are predicted for several categories of food products at once:

1. Bakery products. In 2019 alone, the growth was 7, 7%, especially the prices for products made from rye flour went up. This is due to the insufficient harvest of cereals. In 2020, prices will rise by another 5-10%.
2. Sweets, baby food. From January 1, VAT on palm oil will increase from 10% to 20%. All products that contain it will rise in price by 5%. These include bakery products, convenience foods, baby food, chocolate, cookies.
3. Cereals and legumes. Compared to the beginning of 2019, their price will be 15% higher.

From January 1, “organic products” will appear on store shelves - ecological products that have passed voluntary quality certification. These products will also cost more than their inorganic counterparts.

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Medications

From 2020, pharmaceutical products will be labeled with a special code. He must confirm the safety of the product, as well as protect buyers from counterfeiting.

The introduction of labeling technology is associated with additional costs. To cover them, businesses will inflate the cost of drugs.

Fuel

Most of all, fuel rose in price in 2017. After the jump, the government took the situation into its own hands, as a result, in July 2019, a law was signed to stabilize gasoline prices. It is expected to prevent price spikes.

However, a number of experts believe that fuel will still rise in price from January 1, 2020 in Russia. This is due to the opposite effect of the law - if prices are held back too much, enterprises that produce fuel products will not be able to develop. The expected price increase is up to 5%.

Long-distance transport

Travelers will now have to postpone their vacations even longer. The cost of transportation through the Russian Railways company may increase by 3.5% and more percent. Particularly strong changes will affect the reserved seat, the cost of tickets in which jumps depending on the season, shares of Russian Railways, the cost of fuel. Those who travel by plane will not be better off either.

The Association of Road Transport Operators informs: by the beginning of the year, tickets will rise in price by 10%.

Cars

Drivers in 2020 will have to worry about more than just gas. The cost of light transport will also rise. It is planned to increase the utilization fee from 84,000 rubles to 178,000 rubles. Accordingly, popular models will cost 94 thousand rubles more. The government may still cancel this innovation, as the car market needs support.

Utilities tariffs

A two-stage increase in tariffs for housing and communal services is carried out annually. The first stage is the rise in prices from January 1 of the new year. The exact figures depend on the region, but on average, the rise in price will be equal to 4-5%.

Summing up and togas

We can say for sure what will rise in price from January 1, 2020 in Russia:

1. Alcohol and tobacco products, including electronic cigarettes and vapes.
2. The cost of air and railway tickets.
3. The price of cars.
4. Fuel.
5. Food products: bread, cereals and legumes, sweets.
6. Price for air and railway tickets.
7. Housing and communal services.