Peculiarities of inflation in Russia

Inflation is a long and relatively steady increase in prices for all food and non-food products and services. This process of depreciation of money, which occurs as a result of overflow of channels of circulation of money supply. As a rule, the purchasing power of money depends on it. Each country has its own peculiarities of inflation. In Russia, for example, at the moment there is a stable level of 6.6%. The consequences of the increase in prices can be the degradation of the national economy, the decline in production, the growth of barter transactions, social tension, lack of confidence in the government, and, of course, a slowdown in economic growth.

The causes and peculiarities of the manifestation of inflation in Russia are as follows:

1) Let's start with demand inflation, which is due to the fact that there is a lot of money in circulation, and production at that moment is still functioning, that is, it does not manage to react to sudden changes in demand. The consequence of this is the excess of demand over production capabilities, which is why prices are rising.

2) The next reason for the growth in the money supply is the emissions that are being made by the government, as the federal budget is not enough for government spending.

3) Inflation of costs. In it, growth is accompanied by the fact that the costs of production are constantly growing, and most of all this is seen in the considerable costs of paying workers wages. Therefore, in order to maintain the former price, manufacturers raise the prices of their products. In this case, there is a need to increase wages, because more expensive products need more money, and this already entails another increase in prices for products, forming a kind of vicious circle. All that is listed above, you can predict, if you take into account the characteristics of inflation. In Russia at the moment, such a situation is not expected. So say the experts.

Analysis of inflation in Russia at the moment shows that in 2013, economic growth will slow significantly, which, strictly speaking, will help to control price growth more effectively. Now it is 6.6%. Such an increase occurred in 2012, that is, 0.5% more than in 2011. Now I would like to say about what features of inflation in Russia have the most notable manifestation. So, the prices for food products are growing, by about 0.9% per month, and for the rest of goods - by 0.3%, while services are becoming more expensive by 0.4%.

As a result, we can say that the specifics of inflation in Russia show that at the moment the price increase slightly exceeded the forecasts of scientists for this year. But, nevertheless, despite this, prices do not increase as fast as it does in some countries, so there is nothing to worry about at the moment. In addition, it is worth considering that inflation in our country has stably maintained at the same level for almost twenty years, so a small increase in prices does not entail serious consequences.