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One of the most authoritative Russian economists, Natalia Zubarevich from the University of Moscow, explained quite clearly what is happening with prices, the ruble and inflation in Russia, which worries the public more than anything else at the moment.

The price of eggs in Russia has risen by about 40% in recent months, and people are wondering what is going on.

Natalia Zubarevich explained very simply what happened.

„Veterinary drugs became more expensive and there was a shortage because they are all imported. And when there are drug interruptions, death starts. And secondly, our birds are raised with imported genetic eggs,“ she said.

The year 2023 was marked by a noticeable increase in prices in almost all areas: prices rose for cars, gasoline, chicken, eggs, real estate, writes 72.ru.

Readers of the publication periodically report that their expenses in the store almost double, and meanwhile the official inflation, calculated by Rosstat, at the end of the year is only about 7.5%.

The five most obvious questions about inflation were addressed by Russian journalists to Nataliya Zubarevich, chief researcher at the National Research University Higher School of Economics, a specialist in the socio-economic development of regions.

Why is official inflation so out of line with what people feel?

— This is absolutely normal, because there is a feeling of inflation, which is measured by the Bank of Russia.

As a rule, it is 2-2.5 times higher than the inflation measured by Rosstat,“ explains Natalia Zubarevich. — Rosstat calculates inflation for 109 goods and services in 282 cities.

Accordingly, this is a consumption picture calculated for the average Russian. If you consume goods and services slightly differently, you will experience different inflation.

There is no average Russian here, we are all different.

And specific inflation, of course, is not 7.5%. For eggs from mid-December 2023 to December 2022, prices will increase by 46%, for chickens – by 30%, for lamb – by 17%, for pork – by 13%, for fish – by 9 %.

As you can see, this is all above average inflation. If we take crop production: bananas – by 45%, tomatoes – by 44%, cabbage – by 25%, apples – by 18%, even carrots and beets – by 10-12%. But if people eat a lot of bread, then the price of bread has increased by 5-6%, black and white.

If you use flour at home and bake yourself, then wheat flour has not increased in price, it is minus 2%.

Noodles did not increase in price, buckwheat became cheaper by 18%, because it increased in price only last year, and now we see a retreat. If you take sunflower oil, it has become cheaper by 1% because last year it also went up in price.

If you fly by plane, then flights have become more expensive by 28%. The subway is 16% more expensive, even trams and trolleybuses are 11-13% more expensive, as is the city bus. And all this is higher than accounting inflation.

If you take your holiday and live in a hotel, then there is a 13% increase. And here the Rosstat indicator certainly does not include the full inflation for drugs, which is very important for the elderly.

The consumer basket contains mostly simple, inexpensive drugs such as Levomekol, Allochol, Validol, Corvalol and Analgin.

And the people of the chronicle buy imported drugs, which also contribute to the fall of the ruble.

On average, drug prices have been measured to have increased by about a quarter.

The price per square meter in a new building has increased by 60% in two years – this is inflation.

Why do some products (eggs) become more expensive than others?

— With poultry, everything is very clear:

the two largest producers of chicken eggs, they are in the Belgorod and Mordovia regions, have reduced their production volumes by 4-6% because there was apparently bird flu or mortality, and they produce 14% of all eggs.

Overall for the country, egg production did not decrease, plus 2% year-on-year.

Veterinary drugs became more expensive and there was a shortage because they are all imported.

And when there are drug interruptions, death begins. And second, our birds are bred with imported genetic eggs, that’s your answer.

What happened to the ruble? The ruble fell.

What drives inflation?

„Government spending is the most important factor,“ answers Natalia Zubarevich. — These are often unproductive expenses. Their sharp growth leads to an increase in wages: our nominal wages increased by 13% year-on-year. Endless injections of money into the military-industrial complex, a race for wages, and of course a shortage of workers in the labor market, which increases wage growth. All this increases effective demand. The second is benefits for low-income families, and they, as a rule, consume food. Finally, there is an imbalance with foreign trade, which has caused the ruble to fall because foreign currency has started to gain a little and importers are looking for it. The factor of foreign trade is very important: on the one hand, the effective demand of the population is growing, and on the other hand, the supply of goods and services is not growing.

And then the state constantly increases tariffs: for example, the tariffs of Russian Railways increase by 11% for the second time in a year, all municipal modes of transport become more expensive.

What drives inflation?

„Government spending is the most important factor,“ answers Natalia Zubarevich. — These are often unproductive expenses. Their sharp growth leads to an increase in wages: our nominal wages increased by 13% year-on-year. Endless injections of money into the military-industrial complex, a race for wages, and of course a shortage of workers in the labor market, which increases wage growth. All this increases effective demand. The second is benefits for low-income families, and they, as a rule, consume food. Finally, there is an imbalance with foreign trade, which has caused the ruble to fall because foreign currency has started to gain a little and importers are looking for it. The factor of foreign trade is very important: on the one hand, the effective demand of the population is growing, and on the other hand, the supply of goods and services is not growing. And then the state constantly increases tariffs: for example, the tariffs of Russian Railways increase by 11% for the second time in a year, all municipal modes of transport become more expensive.

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