Page 53 - RusRPTJan21

4.2.1​ CPI dynamics
The Russian government is considering introducing price caps on some goods following a spike in food prices in November, ​Sova Capital reported on December 11. Sugar prices in particular has soared 71.5% as of November year-on-year.
Russian President Vladimir Putin floated the idea at a Cabinet meeting the same day. Inflation increased to 4.4% in the second half of this year, breaching the Central Bank of Russia (CBR) target rate of 4% after it fell to post-Soviet lows in 2019.
A number of factors have gone into pushing up consumer prices, including the seasonal increase in the cost of food after the summer as well as a deep devaluation of the ruble in the previous two months as geo-political fears of new and harsh US sanctions on Russia in 2021 appeared following the victory of Joe Biden in the US presidential elections.
Putin expressed concern over the high growth in food prices at the Cabinet meeting and said the Russian government is considering price controls.
Putin focused on the increased prices for sugar (+71.5% y/y), sunflower oil (+23.8% y/y), flour (+12.9% y/y), pasta (+10.5% y/y), and bread and baked products (+6.3% y/y).
RBC sources reported that the government was considering introducing the possibility of an upper price limit being set at RUB36/kg and RUB45/kg
53 ​RUSSIA Country Report​ January 2021 ​ ​www.intellinews.com