Price rise of food products in Russia

Actuality November, 2, 2007

The All-Russian Public Opinion Research Center (ARPORC) presents the facts, how Russians estimate inflation as a whole and a price rise of food products in particular. What causes of inflation do they see

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The number of the interviewees estimating inflation in the country as very high has increased for three months, from July till October, 2007, by 30% (from 52% to 82%). At the same time the amount of those who consider a price rise reasonable or very slight has decreased (from 8% to 1% and from 35% to 13% accordingly).

In comparison with the last year the number of the respondents connecting the causes of inflation with avidity of dealers and manufacturers, monopolization (from 7 % to 12 %), import of foreign production (from 2 % to 7 %) has increased. At the same time the amount of those, who explains inflation by inactivity and irresponsibility of authorities (from 13 % to 8 %), by price rise of oil and other energy carriers (from 11 % to 3 %), of gasoline (from 8 % to 1 %), by undeveloped economy (from 8 % to 4 %) has decreased. It is difficult to mark out the causes of inflation for every second.

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According to the estimation of 38% of interviewees, the prices for products which they usually buy have increased by 20-25%. The prices have increased at least twice in opinion of 32% of respondents. Public opinion marked out price rise by 10-15% on the average even three months ago.

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The most tangible for Russians is a price rise of dairy products and seed-oil (74%) and 82% of interviewees fix a significant price rise of these kinds of products (for comparison, three months ago a significant price rise on dairy products said only 26% polled). Also 56% of interviewees specify an essential price rise on meat and meat products, 48-49% mentioned bakery products, and also groats and macaroni, 41% mentioned vegetables and fruits.

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Only 5% of interviewees spend less than a quarter

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of family budget for food expenditures.

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29 % spend 25-49% of their incomes for meal, 60% spend over half of family income for meal, including 18%, where almost all incomes are spent for meal (75% and moreover). In spite of a price rise of products, the share including products expenditures of the Russian family budget has not yet changed.

Every second interviewee is going to limit the product expenditures.

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One third of respondents (34%) points out, that the price rise of products will cause a loss to the family budget, but will not influence their meal.

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The part of those who is going to limit the diet is 30 % in Moscow and St.

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Petersburg; it is 46-50% in large and average cities and 57-60% in small cities, villages.

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The majority of interviewees (75 %) considers that such price rise of products should have been prevented (from 57% in a group of those who treat themselves as endowing, about 86 % among poorly provided group). 15% of interviewees believe, that this price rise is caused by objective reasons, and 5% suppose that this is because of natural instability of prices.

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Initiative All-Russian poll of ARPORC was conducted on October, 20-21, 200. There were 1600 people interviewed in 153 settlements, in 46 regions, territories and republics of Russia. The statistical error does not exceed 3,4 %.

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