Smartphones and cars: that prices would rise in Russia.
Imports may become more expensive in the range of 10-35% on the back of falling ruble and coronavirus, experts say. Commodity prices are international companies, manufactured in Russia, will jump up to 10%. Will rise in price more other baby goods, shoes and clothing, electronics and appliances, and medicines. May increase by 10-15% and the cost of housing.
Russia is not much currently depends on imports, although foreign electronics and appliances take up almost half of the market. These goods will rise because of the falling rate of the ruble most of all, according to “Izvestia”, citing experts.
Deputy head of information-analytical center “Alpari” Natalia Milchakova told the newspaper that last year the share of foreign food products in domestic retail was about 36%, and food from abroad took slightly more than a fifth of the market.
However, the market of household appliances and consumer electronics, the share of imports – more than 40-45%, and in the smartphone market of imported products have the lion’s share of 80-90%. The rest, mostly made in Russia products of international companies.
Milchakova said that we can expect higher prices for imported household appliances – washing machine, kitchenware and microwave – 20-35%. The same fate awaits and the price tags of electronics – smartphones, computers and gaming consoles. However, this increase in consumers will be felt not earlier than the second half – now in stock sufficient quantity of goods.
Leading analyst Mobile Research Group Eldar Murtazin said “Izvestia” that the growth of prices on electronics will be associated with the ruble, and will happen gradually with a handicap of 3-4 weeks.
In producer prices is already incorporated fluctuations, said in turn the analyst TelecomDaily Ilya Shatilin. However, because of coronavirus in the market there is a shortage of components, logistics and production disrupted it can cause a small gap in the market that cause further growth of prices on electronics, he says. The CEO of Lenovo in Russia Alexander Kataev stressed that although the fall of the ruble will affect retail prices, those changes will not be “instant”.
The largest Russian electronics retailers said that prices are still not changed.
Overall, although the Russian economy was able to cope with import substitution, a number of industries have coped with it worse, said the head of investment Department “BCS” Narek Avakian. Partially successfully replaced the import car industry, defense industry, metallurgy – and construction and consumer sectors have coped with it worse. Among the Laggards – pharmaceutical area, where you can expect a jump in prices by 10-15%.
The Chairman of the Association of Russian pharmaceutical manufacturers Viktor Dmitriev suggested that
imported drugs can rise even more – up to 30%. However, the price increase there will also be uneven and hardly sharp – someone from pharmacists have stocks until the end of the year, and someone- to the beginning of April.
You can expect a price increase on Chinese goods, in particular – on children’s clothing, shoes and toys. Prices for food products is unlikely to grow – the Ministry of agriculture said that the share of imported food and beverage market is insignificant.
At the car prices could rise in the range of 6 to 10%, said the analyst of “Finam” Alexey Korenev. The price increase will affect and the Russian car – Lada even. To understand more precisely the dynamics of price growth for cars will be in the coming days. However,
the cars collected in Russia, prices will rise slightly, solidary experts.
Two days earlier the publication of The Bell reported that the Russian market may open on Tuesday at level 77-78 rubles per U.S. dollar. However, the situation may improve, because the Ministry of Finance and the Central Bank announced in time on the market support. The head of the Association of ACI Russia Sergey Romanchuk said that to run to buy the dollar right now makes no sense — already lost when the price was favorable. Allow ourselves to panic is not necessary, instead of buying currency it makes sense to buy something from imported equipment — then it will be more expensive by about 10%.
Inflation is possible, but it will not be as dramatic as in 2014 – by the end of the year, this figure could rise to 4-5%. Six years ago there was a jump from 6.3% to 11.4%. Real incomes may rise by 1.5% – most painfully the collapse of the market will hit the middle class, said the chief economist of “Alfa-Bank” Natalia Orlova.
A day later, a Professor in the Department of Finance and banking, Ranepa Yury Udencov said “Evening Moscow”, which is primarily from the fall of the ruble will suffer as foreign travel of Russians, and the prices of imported goods – cars, clothes, and equipment. However, he added, even though the purchasing power of Russian citizens can be reduced, strict price hike of essential commodities should not wait products will maintain prices.
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