Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Russian prosecutors must help monitor food, fuel prices - RIA

Published 12/01/2015, 11:06
Updated 12/01/2015, 11:10
© Reuters. A cashier displays Russian rouble banknotes taken from a cash register at a local grocery store in Stavropol
USD/RUB
-

MOSCOW (Reuters) - Russian prosecutors must monitor the price of fuel, food and medicine and act if wages or benefits are delayed, the head of President Vladimir Putin's administration was quoted as saying on Monday, signalling growing Kremlin fears about inflation.

Sanctions imposed by the West over the Ukraine crisis, a retaliatory ban on Western food imports and a plummeting rouble have spurred inflation in Russia, particularly hitting the cost of staple foodstuffs and prompting officials to warn "speculators" against trying to cash in by raising prices.

Sergei Ivanov, head of the presidential administration, was quoted by RIA news agency as saying that an increasing number of Russian citizens every year were turning to prosecutors to seek protection of their rights.

"Given the difficult economic situation, you must help monitor the pricing of fuel, food products, medicine, and immediately respond to workplace violations, to delays and other irregularities in the payment of wages and social benefits," he told prosecutors on the national "day of prosecutors".

"Now, as before, the main thing you need to pay attention to is the protection of their (citizens') legal rights and interests, primarily in the social sphere."

Officials have expressed concern about the rising prices of food which are squeezing real wages. In December, Putin instructed the government to employ a "hands-on" approach with producers to make sure prices do not rise uncontrollably.

According to preliminary data from the Federal Statistics Service, inflation reached more than 11 percent last year, with food prices increasing by more than 15 percent, fuelled by a weaker rouble which fell more than 40 percent against the U.S. dollar in 2014.

The Russian currency has dropped a further 10 percent since the beginning of the year, dragged lower by plunging oil prices.

To stem increases of staple goods, the Agriculture Ministry has moved to curb exports of grain to protect bread prices and the government has offered incentives to agriculture, especially milk producers, to cover shortfalls left by the import ban.

© Reuters. A cashier displays Russian rouble banknotes taken from a cash register at a local grocery store in Stavropol

There have been no major protests over the economic crisis so far and Putin's popularity soared after Russia annexed the Crimea peninsula from Ukraine last March. But critics say he risks a wave of protests if prices rise sharply in the coming months.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.