 Snickers provides 80 percent less for the same money, an ironic illustration in Novosti noted. |
Prices for basic food staples in Primorye have jumped sharply in the 25 days since the ruble was devalued, and the situation is becoming critical, administration officials said Sept. 7.
The prices of bread, sugar, cooking oil, and eggs are rapidly rising beyond the income of many residents, said municipal officials and administration officials overseeing food production.
"A lot of what we have is pure price speculation," said Vice Gov. Valentin Dubinin, who chaired the meeting. "The system simply isn't being managed anymore."
According to Fyodor Novikov, director of the krai Department for the Consumer Market, retail prices for meat have jumped 80 percent and dairy products 30 percent since the Aug. 17 devaluation. Other prices that have risen sharply include baby food (100 percent), flour (15-20 percent), sugar (200 percent), macaroni (100 percent), and cooking oil (250 percent).
In Ussurisk, Primorye's second largest city, meat prices have risen to more than 50 rubles ($3.90) per kilogram. And although Primorye's only sugar mill is in that city, the cost of sugar had risen to 20 rubles ($1.55) a kilogram.
"What is going on here is reminiscent of 1991 or 1994," said Novikov, referring to the recent periods of accelerated inflation.
Novikov attributed the sharp price hikes to the high percentage of food imported to the krai, either from abroad or from regions as far west as the Volga River Valley. Officials estimate that between 70 and 90 percent of Primorye's food staples are imported.
Dubinin also accused retailers, re-sellers, and "speculators" of aggravating the situation. Authorities are cracking down on retailers and street sellers to prevent artificial price hikes, but underground and unlicensed retailers have proliferated, said Novikov. This will mean a loss of "several million rubles" in tax revenues for local coffers by the end of the year, he said.
"If earlier we were dealing with civilized trade and a civilized market on the streets now, it's all disappearing," said Novikov.
Novikov estimated that as reserves on staples purchased wholesale prior to the devaluation dwindle in the next week, consumers should expect to see prices jump even more dramatically.
The long-standing feud between municipal and krai authorities distracted officials at the meeting. Vladivostok Vice Mayor Pyotr Byletsky accused the krai of not doing enough to crack down on speculators hiking food prices. Dubinin angrily denied the charge.
"We are passing measures with law enforcement authorities to continue fighting against speculators," said Byletsky. "But we need your help in doing this."
Valery Zorin, chairman of the krai Committee on Food and Food Processing, lashed out at federal officials for giving outlying areas few options for dealing with the dropping ruble. He suggested price ceilings and the wholesale purchase by the krai of sugar, flour, and oil.
But, he said, "We are all prisoners of the politicians in Moscow."
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