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Wednesday, September 20, 2017

Prices in Russia are falling at a record pace


Photo: Nikolay Gyngazov/Global Look Rgege next year minimum wage (the minimum wage) should be compared with the cost of living. The job has given Vladimir Putin. The state Duma has promised to enact as soon as possible. Thus, the minimum wage equal to the subsistence minimum for the first time, although it has declared in recent years. Will this help in the fight against poverty? Details…

  • China has sharply reduced import of waste from USA
  • Expert: Tyumen reached the fourth place in Russia on volume of housing
  • Average check of Russians during one trip to the store has exceeded 500 rubles

Go to a section…”Sevastopol should become the southern capital”Photo: Vasily Batanov/RIA “news”,”If you spend time on the constant scandals, public discussion, and to care in other planes other than work, then you have nothing useful happens” – said the newspaper VIEW, the newly elected Governor of Sevastopol Dmitry Ovsyannikov. In particular, he commented on the subject of previous disagreements with the team of his predecessor Alexey Chaly. Details…

  • The Ministry of foreign Affairs: Problems with the DPRK resulted from the overthrow of Gaddafi in Libya
  • Moscow urged Washington to give the restriction of military contacts
  • Clinton declared a “personal vendetta” Putin after NATO enlargement

Go to a section…”to Turn Victory Park into a Museum not normal”Photos: spravka.sevas.com”Sevastopol has a glut, where virtually every square meter of the monuments. Residents even said that there are already enough” – said the newspaper VIEW Nadezhda Vinokurova, chief engineer of “Institute Novgorodgrazhdanproekt”, developed the project of reconstruction of Victory Park in Sevastopol. Details…

  • Rocket “Soyuz-FG” was launched from the Baikonur cosmodrome with a manned spacecraft “Soyuz MS-06”
  • In the movement “forty times Forty” did not agree with Govorukhin and Medina on “Matilda”
  • Andrey Urgant commented on the quarrel of son with Solovyov

Go to a section…the United States remained a gap, a critically vulnerable to nuclear attackPhoto: Workman/WikipediaРассуждающие about the prospect of nuclear war between the US and the DPRK think in terms of a missile strike, the benefit is for the missiles, Pyongyang has bet. Meanwhile, it is obvious that such an attack is impossible. But it is theoretically possible the other is also nuclear and so devastating that America after he did not recover for a very long time. Details…

  • The number of victims of hurricane “Irma” reached 55 people
  • Maduro agreed to the dialogue between the Venezuelan government and the opposition
  • North Korea has rejected a new UN security Council sanctions

Go to a section…”Arrow from Ivanteevka” was inspired by the American experiencePhoto: from the personal pages vk.com the alleged shooter”Ivanteevka is a very beautiful, prosperous city with good, proper social environment. We need to understand what pushed a young man to such actions,” – said the newspaper VIEW Duma Deputy from the Moscow region Sergei Zhigarev. A student opened fire in class, according to classmates, was different unsociable disposition, however, he did not hide his intentions, no one took the example. Details…

  • The building of the Federation of Jewish communities in Moscow threw “Molotov cocktail”
  • In Samara, an anesthesiologist was accused of raping patient
  • In an accident with a drunk policeman in Moscow killed a motorcyclist

Go to a section…

Eduard Birov: Where did the “Orthodox LIH”

Media horror story “ISIL is terrorizing the Orthodox culture”, it seems, may be one of the main subjects of liberal propaganda in the new political season leading up to the elections of the President.
Details…Discussion: 23 comments

Andrew Schmidt: Why Russia is easy to do business

What we in Germany took years of painstaking work, managed to do in Russia for a few months at a comparable budget, and he’s always at the start of several thousand euros.
Details…Discussion: 15 comments

Yevgeny Satanovsky: the Arc of the armistice

What are the chances of eradicating the “Islamic state” as a tool of influence in the middle East the Sunni elites in the development of the situation in the Muslim world? The IG is not the structure, the aim of which was the establishment of a Caliphate.
Details…

    Go to a section…

    Online marathon “election Night – 2017”

    Discussion: 7 comments

    Putin held a plenary meeting of the Eastern economic forum

    Putin held an open lesson “Russia looking into the future”

    Discussion: 9 comments

      Go to a section…

      Defined “Miss America – 2018”

      For the first time in the history of the contest “Miss America” winner was the representative of North Dakota. 23-year-old Kara Mundu is the USA champion, and six years ago was marked by Obama for his merits in the field of philanthropy. Local media and bloggers, however, the winner dubbed the “fatty”Details…Discussion: 21 review

      “Irma” flooded Miami

      The popular American resort of Miami in Southeast Florida, like many other cities of the coast of the Atlantic ocean, was almost flooded after a hurricane swept “Irma”. Only in the de-energized state of 3 million buildings evacuated nearly 6.5 million of itemattribute…

      Musk first showed SpaceX space suit in full growth

      Elon Musk in his blog posted photos of the new SpaceX space suit in full growth. Prior to that, he showed the helmet and upper part of the protective space suit. The man in the suit standing on the background of the ship Crew DragonПодробности…Discussion: 11 comments

        Go to a section…For whom do you support in the conflict between Saakashvili and Poroshenko?

        • I wish you success Saakashvili
        • I wish success to Poroshenko

        Alexey Chaly invited to make a Patriotic Sevastopol the capital of Russia. How do you feel about this idea?

        • Support
        • Patriotic capital should be another city
        • Patriotic do not need the capital

        Ramzan Kadyrov has expressed its disagreement with Russia’s position regarding Myanmar. Is it acceptable that the head of the Russian region publicly challenged the country’s foreign policy (which is not true to his official authority)?

        • Yes, a politician can always defend its position publicly
        • No, in this case, it’s insubordination
        • All depends on the personality of the head region

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          News of the HOUR:North Korea has rejected a new UN security Council sanctions

          Medina said his “patience is full””Russian helicopter” was found in Kherson region Ukrainegorokhiv: Poklonskaya woke obscurantist siliporite of the Russian Federation demanded an apology from the German magazine for insults to Putinesque details of the draft resolution of Russia in the UN mission in Donbasskogo on behalf of Putin, met in Damascus with Bademantel Urgant commented on the quarrel of son with Solovevym-speaker explained his statement about the armless democraticpresident of the USA to Ukraine spoke about the fate of Saakashvilia announced the drop of relations with Russia at “lowest point”Mass “telephone terrorism” raises many вопросовApple introduced a new iPhone

          The main theme

          Russia prevents the United States to stifle the DPRK

          liberal bloggers

          Krasovskii and pubic hair got in a fight over the procession regarding “Matilda”

          “test anxiety”

          The U.S. explained the dissatisfaction with the purchase of a Turkey-400

          mutual trade

          China began to reject American trash

          “breach of obligations”

          EU puts Ukraine the conditions for the allocation of the next tranche

          “we believe in democracy”

          Clinton said the reasons “personal animosity” Putin to her

          “walking intelligence”

          The Russian Embassy in the US said about bullying of the state Department

          public debt

          The welfare of the United States is impossible without money from the rest of the world

          priority

          How would look like the scenario of a nuclear attack by the DPRK to the United States

          Breakthrough Saakashvili

          Andrei Babitsky: In the boat of Ukrainian statehood punched a huge hole

          “the great project”

          Sergei Khudiyev education Reform in Ukraine indicates an important watershed

          The scandal with the “Matilda”

          Eduard Birov: the Root cause of the incident is obvious miss state

          in your opinion

          For whom do you support in the conflict between Saakashvili and Poroshenko?

          “We don’t the stability of the “regulatory” needs and ugly iron scissors”the Prices in Russia are falling at a record pace

          Last August set a record for deflation in the entire history of observations in modern Russia. The phenomenon itself in Russia is not new and is usually due to seasonal factors. However, the August decline in prices there are less obvious reasons that may have for the economy of large positive effects.

          Deflation (falling prices) in Russia in August 2017 0.5%. This is a record in modern Russian history. So far, the decline in consumer prices was maximum only in August 2003 (when – 0.4%).

          Such a significant deflation in August has contributed to the sharp depreciation of the vegetables and fruits of the new harvest – by 15.5% after 8.3% in July. For example, prices for cabbage decreased by 42.6%, potatoes, carrots, onions, tomatoes – 26.2–28.5 per cent, beets, grapes, bananas – 15.6 to 18.6%. Have fallen in price one-third of the observed kinds of food products. In General, all food products in the last month of summer fell 1.8%.

          But non-food products became more expensive, however, a small 0.1 percent. Services increased in price by 0.4%. However, in comparison with their appreciation of 1.6% in July due to the growth in utility tariffs is not so much.

          Since the beginning of the year in Russia is still experiencing inflation, not deflation. But its level is below the level of the inflation target of the Central Bank of the Russian Federation. In annual terms inflation fell from 3.9% in July to 3.3% in August.

          How Russia has managed to achieve a historic result?

          Of course, the important role played by the seasonal factor – on store shelves came new crop. “The appearance of fruits and vegetables fresh crop always leads to lower prices. But if in the past it basically only restrain inflation in the current environment has led to record deflation”, – says senior analyst of “freedom Finance” Bogdan Zvarich.

          Seasonal reduction of prices on vegetables and fruit occurs every year, while a record deflation for the first time.

          It has played the role of a number of factors that suggests that at the end of the year inflation in Russia may reach even 3.5%.

          “The domestic economy in 2014-2015, have experienced a sharp devaluation of the ruble, that made in 2015, inflation in double digits. And the current decline in inflation is largely a consequence of its rapid growth earlier,” says Andrew Khokhrin of IR “Zerich capital Management”. In the same year there is a fundamentally strong ruble.

          Secondly, the country has seen a structural economic crisis, a sharp decline in the share of income from the sale of natural resources. “A way out of this crisis started the decline in domestic demand. The population began to spend less. High inflation in this case is simply nowhere to take,” says Khokhrin.

          Finally, the work of actions of the Central Bank. “The regulator for a long time holds high stakes in the economy and absorbs excess liquidity,” said Zvarych. The high key interest rate was not allowed to go into the money market to the large amount of free roubles.

          However, if feel the Russians in his pocket the August deflation? Here we have to consider that each family has its own inflation related to private preferences. “If the family is within their personal basket consumes few vegetables and fruits, then it at the end of August prices will not change. If the proportion of fruits and vegetables in the basket high, on the contrary, deflation is for this family to be even larger than official statistics,” – said Zvarych.

          For the Russian economy deflation within two to three months will have a positive effect. This will allow the regulator to continue the cycle of lowering the key rate. “At the September meeting, the Central Bank could cut rates from 0.5%. This will lead to a corresponding decline in rates on loans and, therefore, will stimulate investment activity of companies,” expects Bogdan Zvarich. Analysts polled by Reuters, while waiting for a more modest rate cut on 15 September, from 9% per annum to 8.75%.

          In any case, it should stimulate the Russian economy and thereby to support the ruble. “The current 3-4% is a good inflation range. Therefore, the Bank of Russia will be forced to reduce the key rate to provide the money returning to growth in the economy”, – said Khokhrin.

          In the remaining months of the year, experts do not expect deflation. Most likely, inflation will grow at a moderate pace, with the result that at the end of the year will be about 4%, expects Zvarych.

          In fact, deflation may be less dangerous than hyperinflation. With deflation periodically fighting developed countries, including by raising the key rate. For example, with deflation the past two years fighting the EU and Japan.

          If deflation had become a daily occurrence, she would have buried virtually all the victories of import substitution and made the business unprofitable Russian farmers. On the other hand, the Central Bank would have to significantly reduce its key interest rate almost to zero. However, this creates risks for the banking business. Not to mention the fact that consumer demand amid deflation will slow down even more. While today’s fall in retail sector remains a deterrent to the growth of the Russian GDP.

          source

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