Inflation in Russia

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Introduction Good day,dear friends. Actually, I considered the topic of the presentation for a long time and finally I have chosen inflation in Russia. Inflation, as one of the main macroeconomic issues, is a really urgent problem of today. In some countries the rate of inflation is 5 %.while in others 15%. Today. we will discuss history and modern peculiarities of the Russian inflation. So,here is the plan. Definition Inflation is a sustained increase in overall level of prices, as measured by some broad index (such as Consumer Price Index) over months or years, and mirrored in the correspondingly decreasing purchasing power of a currency.An increase in inflation means an increase in prices. This affects whether or not a consumer is…show more content…
Therefore local authorities wanted to keep that control, despite the failure of the government to subsidize such regions. Taking into account the fact that that the majority of enterprises were monopolists, and market regulation systems in the country did not exist, the enterprises took advantage of the situation to raise the prices of goods and services.(as we all know that it is profit push inflation) Reasons of inflation in Russia Usually the causes of inflation are divided by the monetary and non-monetary. However, in our country, this division is very conditional, so at this stage it is better to talk about specific assumptions of a price growth. Usually experts name three main causes of inflation in Russia in recent years. First - rising costs of food in the world. Our country is imported from the border a lot of food and raw materials. After the drought of 2010 the share of imports has increased significantly. The second reason - the growth of budget expenditures, especially in the social sphere, and monetary support for the economy. The government continues to pump its money, that affect the growth of the money supply and as a result - reduce the purchasing power of the ruble. The third cause of acceleration of inflation - the growth of tariffs for state monopolies. Especially - electricity. Most state-owned companies raise their prices - for gas, for energy, for tickets. And the government can not stop this
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