An economist advised to stock up on goods for the New Year

2021-11-08

Inflation is unstoppable

The economist Nikita Maslennikov said that in December Russians will face a jump in prices for non-food products, so now it is worth buying computers, household appliances, electronic devices, clothing and footwear. According to Rosstat, average monthly inflation in October accelerated to 1.11%. In annual terms, the consumer price index rose to 8.13%.

Such a recommendation, obviously, is important for those who have certain savings and a salary that allows them to purchase household appliances, electronics and other non-food items for future use. However, in 2020, the median salary in Russia was 32,422 rubles and 60% of Russians had no savings. It is unlikely that the situation has changed radically during 2021. This means that most of the country’s residents will not be able to purchase goods for future use in order to protect themselves from inflation.

On the other hand, the purchase of goods for future use will not particularly improve the situation of even those workers who can afford it. Any product has amortization and obsolescence, both moral and physical. Shoes and clothes wear out, household appliances wear out and break, telephones become outdated. This means that over time it is necessary to acquire these goods again to replace worn out and outdated things. Goods will already rise in price, and the workers will still be forced to pay big money. They will still lose.

There is no way to insure against price rises by building up stocks. Only for a short time will this protect savings from depreciation, but sooner or later inflation will still overrun and the level of welfare will still fall. The only way for workers to avoid impoverishment is to fight for indexation and wage increases, for a real increase in pensions and the abolition of pension reform, for a decent future for everyone.