What will rise in price in the near future in Russia in 2021

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

The difficult economic situation in the country is a reason to revise the price level for certain categories of goods and services. The state of instability creates anxious expectations. Every person is interested in what will rise in price in the near future in Russia in 2021.

Reasons for price increases

From the point of view of pricing, the market is guided by economic indicators and their trends. They are formed due to objective circumstances that do not depend on politics and the government, and subjective, related to the decision of government authorities, economic modeling.

Objective ones include:

• economic crisis in the world economy;
• the coronavirus pandemic and, as a result, the ruin of some entrepreneurs, a drop in demand;
• reduction in prices for hydrocarbons - the main part of Russian exports.

In order to maintain macroeconomic indicators and economic stability, the government is making an attempt to balance the situation. We will leave the question of whether all decisions are justified to the experts. Undoubtedly, the state solves some of the problems at the expense of the citizens' "wallet".

Subjective factors include:

• wrong economic model of state development;
• laws passed that ultimately stimulate price increases;
• a 3.5-fold increase in the rent for minerals for the production of fertilizers, for ores for metal;
• growth of the ruble against the dollar, euro;
• panic mood of the population in a situation of a possible rise in price.

The government is trying to include compensatory mechanisms. It is planned to raise public sector wages, indexation is being carried out.

What will rise in price in 2021

Let's consider the individual categories of goods for which there will be a rise in price, and the reasons why this will happen.

Group of non-food products

The main reason for the rise in prices in this segment is the fall of the ruble, especially since the boundaries of devaluation have not yet been fully defined. The rise in the exchange rate causes alarm among citizens, they are starting to buy up foreign currency.

Wholesalers and retailers raise the prices of goods: not by the nominal percentage of the ruble's depreciation, but higher. The cost of the goods includes an insurance percentage in case of a further increase in the value of the currency.

Despite the policy of import substitution, the share of foreign-made goods is quite large. If some of them are produced in the Russian Federation, then some of the components are imported.

The government also failed to resolve the issue of settlements with China in local currency. The flow of goods from the PRC is quite substantial. The Central Bank conducts a limited emission of currency, which does not lead to a significant stabilization of the ruble exchange rate.

We must pay tribute to the Central Bank, they have reduced the discount rate to a record level - 4, 25%. This opens up access to cheap loans.

What will rise in price in the near future in Russia:

• Appliances;
• computers, electronics;
• cars;
• brand clothes;
• cosmetical tools;
• shoes.

The latest news announced by economic experts indicate that the percentage of price increases can vary from 5 to 20% for certain goods. Presumably, household appliances will increase in price by 13-15%, computers, electronics - by 9-10%, footwear, clothing - up to 5%.

Increase in price of the product group

The rise in food prices is due to various reasons. One of them is the law, which was proposed in 2018, about 100 percent recycling of the packaging of all goods. It comes into force in 2021. Responsibility for disposal is shifted to the manufacturers as well as the importing companies.

They will have to pay an increased environmental fee. It is expected that this will increase the state revenue by more than 130 billion rubles. Producers and importers invest their expenses in the price of the goods.

The introduction of new rules for truck drivers increases transport costs by at least 5% per unit of goods. The question whether it was worth introducing these environmental, transport standards in such an economic situation remains open.

What else will there be a rise in prices:

• Tea, coffee, cocoa - these products are imported, they are tied to the exchange rate. It is planned to rise in price by 15-20%.
• Prices for sunflower oil, sugar and dairy products will rise. It should be taken into account that monopolists play into their hands on the rush demand during the epidemic. The rise in prices will take place gradually, a possible increase - 15-20%.
• Bakery products and flour will rise in price by almost 20%. A high harvest, according to the government, is not a reason to restrain prices. In addition to the previously mentioned reasons for the rise in prices, the increase was due to changes in the cost of wheat on world markets.
• Will increase in price by about 15-20% of animal feed.

Service price increase

The latest news from the government is the rise in prices for electricity, gas, utilities. Which of the services will rise in price in the near future in Russia in 2021:

• electricity tariffs - by 5%;
• gas - by 3, 11%;
• communication services - by 3, 7%;
• railway transportation - by 3, 7%;
• housing and communal services - prices will rise by the percentage of inflation.

The increase in prices is justified by the regulatory instruments used to stabilize the operation of industries taking into account inflation.

Outcomes

The policy of increasing prices for goods and services will continue in 2021. On the one hand, this is due to objective reasons for global economic development, a pandemic, and a fall in hydrocarbon prices. Imported goods are becoming more expensive mainly due to the depreciation of the ruble.

On the other hand, not always timely, thoughtful decisions of the government, the growth of inflation also stimulate the rise in prices. The rise in prices for certain categories of goods and services is considered as a mechanism to compensate for the loss of the total gross income of the state.