Russian President Vladimir Putin called for more attention to supporting farmers, which should help reduce food prices in the country.

The head of state announced this on Tuesday, August 24, during his speech to the participants of the United Russia congress.

“I fully share the party’s intention to pay more attention to supporting farmers and small businesses in the countryside, including the development of fairs and non-standard trade points in all regions of Russia, where farmers can sell their products directly, without intermediaries.

I would also like to note that the implementation of these measures will also have an impact on reducing food prices, ”the Russian leader emphasized.

According to the Kremlin, at the moment, the price situation in the country remains difficult.

Nevertheless, this issue is under constant control of the authorities, said on Tuesday the presidential press secretary Dmitry Peskov.

“The government controls the price situation.

And on this score there is a direct instruction from the President of Russia, ”Peskov is quoted by TASS.

As Vladimir Putin previously explained, external and internal factors associated with the revival of activity in the global and Russian economies simultaneously play in favor of price increases.

Nevertheless, the government and the Central Bank react accordingly both at the level of macroeconomic actions and sectoral regulation, the head of state noted.

“It is important that all the steps taken are - I want to emphasize this once again - coordinated, verified and balanced.

I am sure that this is how we will act, ”Putin said.

According to Rosstat, in June 2021, consumer prices in Russia increased by 6.5% compared to the same period in 2020.

The achieved level of annual inflation has become the maximum in almost five years.

However, already in July the indicator slightly decreased - to 6.46%.

It should be noted that over the past year in Russia, the highest rise in prices for sugar (by 41%) and sunflower oil (by 27%).

In addition, chicken eggs (18%), meat and poultry (11%), pasta (8%) and fruit and vegetable products (6%) significantly increased in price.

“Now we are witnessing a recovery growth in the economy after the cancellation of lockdowns both in Russia and around the world.

Global demand is warming up, but the supply is still insufficient, so the cost of products is growing everywhere, "Nikita Maslennikov, head of the Finance and Economics department at the Institute of Contemporary Development, explained in an interview with RT.

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Since the beginning of the year, the government has already taken a number of measures to address the problem.

In particular, agreements were concluded on freezing prices for some products, subsidies were issued to a number of manufacturers, and export duties were increased.

The initiatives undertaken by the authorities allowed to seriously slow down the overall rise in food prices in the country.

Nikolai Pereslavsky, an employee of the Department of Economic and Financial Research of the CMS Institute, shared this opinion in a conversation with RT.

“If the government did not artificially freeze prices by negotiating with suppliers and retail chains, product inflation could be one and a half times higher than current values.

Therefore, the actions of the Cabinet of Ministers both regarding freezing food prices and working with a damper for fuel can be considered effective, ”the expert said.

Pressure on prices

As an additional measure to curb food inflation, the authorities plan to develop solutions to reduce prices for transportation services.

The corresponding instruction was announced on Tuesday by Deputy Prime Minister Victoria Abramchenko.

"In connection with the emergence of information about an increase in the cost of road transportation from 20 to 50%, Victoria Abramchenko instructed the Ministry of Transport, the Ministry of Industry and Trade and the Ministry of Agriculture, together with business representatives, to analyze the current situation and work out measures to solve problems with logistics and to reduce prices for transport services," the message says. on the website of the Cabinet.

It is noteworthy that the share of logistics accounts for about 15-20% of the cost of the product, said Nikolai Pereslavsky.

Also, according to him, along with the actions of the authorities, the seasonal factor will have a restraining effect on prices in the near future.

In particular, we are talking about the entry of additional volumes of fruits and vegetables into the market in connection with the new harvest.

“Judging by the yield this year, any additional measures may no longer be needed.

At the same time, control by the authorities will still be necessary at least until winter, ”the expert believes.

According to the forecast of the Central Bank, by the end of 2021, inflation in Russia will be 5.7-6.2%.

At the same time, according to Nikita Maslennikov, in September the figure may drop to 5.8%.

In the future, the rise in prices will slow down due to natural reasons, says Sergey Anureev, professor at the Department of Public Finance at the Financial University under the Government of the Russian Federation.

“Within six months, the state can effectively contain food prices, but after that many structural issues need to be revised. However, the rise in prices has already stopped. In the future, prices will not be able to grow indefinitely and they will simply run into effective demand, ”Anureev said in an interview with RT.