Russia silences economists. It prohibits them from forecasting increases in food and gasoline prices
FAS decisions included, among others: following comments from the head of the analytical department at the Rikom-Trust investment company, Oleg Abelev, who presented a forecast to the media regarding upcoming increase in food pricesreports Reuters. Warnings were also addressed to the director of communications at GIS Mining and the CEO of Alliance Trucks, who predicted an increase in fuel prices.
“Coordinated actions of competing economic entities that may lead to the fixing or maintenance of prices constitute a violation of the Competition Protection Act,” FAS said in a statement.
The Office has previously issued warnings to experts for forecasting increases in the prices of products, medicines or fuel, especially in conditions of instability – when the market prices of these goods were accelerating. But this year, warnings are issued more frequently with no visible acceleration in the pace of price growth – official statistics reported almost zero weekly inflation in April.
In January this year, FAS sent warnings to the managing partner of the Agro and Food Communications agency, Aleksandra Panczenko, for his statements about an increase in food prices by up to 30 percent. In April – to the head of Sberbank Leasing for forecasting an increase in car prices by 15 percent, and to the management of the Automotive Service Association for forecasting an increase in prices of engine oils and additives by 5 to 15 percent.
Publications about price increases have a direct impact on society's inflation expectations, which the Central Bank tries to manage. According to the deputy governor of the Bank of Russia, Alexei Zabotkin, a sharp change in inflation expectations will lead to a revision of the forecast interest rate path.
“If [oczekiwania inflacyjne] are high as they are now, the task becomes more difficult. The higher expectations, the faster people and businesses will be inclined to spend rather than save. However, there are no tasks that are impossible to solve, we just need more time and patience,” the Central Bank said on its Telegram channel.
