Prices hikes on everything from mobile tariffs to potatoes

2020-09-14

The pandemic has hit the Russian economy hard! Both businesses and ordinary citizens suffered. But since profit is a priority in a market economy, business and capital will save itself at the expense of ordinary citizens. According to the experts, it is forecasted that by the end of the year, prices for a variety of goods and services in Russia will increase. Everything from mobile communications tariffs to.. potatoes! It is a pity that the incomes of working-class Russians are not growing, but instead… declining.

Experts interviewed by Izvestia predict a 5-7% rise in prices for cellular communications by the end of the year. Moreover, this process will apparently be disguised. Telecom operators will look forward to introducing new tariffs with the same prices, but with cut options and with the aim to gradually transfer subscribers all from “outdated” ones. Some operators have also already announced the axing of “unlimited tariffs” – mobile plans with unlimited internet, a very popular tool among the ever-growing service sector in the age of “blogging”. According to Denis Kuskov, General Director of Telecom Daily, the total increase in prices for mobile services in 2020 will be 12-15%.

This fall, Russian consumer will a spike in prices of potatoes (a common staple among all Russians). Agricultural producers cite bad weather and a later sowing campaign due to the pandemic as the reasons. In some regions of Russia, potato fields have been severely affected by drought and flooding.
We would like to point out that potatoes, due to their cheapness, are one of the most consumed food products. Among the poorer strata of Russians in the first seven months of 2020, potatoes remained in the top three of the most popular products purchased by our fellow citizens in “economy” grocers such as Pyaterochka and Magnit. Thus, the rise in prices will indirectly hit millions of Russians, including the poorest.

Against the backdrop of rising prices, the incomes of Russians during the period of “self-isolation” lockdown experienced a record drop of 8%. The purchasing power of Russia’s citizens is also hitting anti-records. In these conditions, the rise in prices for goods and services drives the general economic situation into an even greater dead end. After all, the lack of effective demand will hit business eventually and can potentially lead to an economic recession.

Capitalism regularly drives itself into a corner. And the bourgeoisie can only rely on the usual methods of “solving” impending social conflicts.