America Has Overtaken Everyone Once Again

America has overtaken everyone once again–this time as the country with the fastest inflation.

If we can’t slow down the rise in prices, than we can at least compare them with other countries and cheer up. This is what the Russian Federal Service of State Statistics did yesterday. The world map is full of countries with higher inflation than in Russia (we don’t talk about Zimbabwe who don’t even have paper to print money on). In the USA, for example, in June, the prices have risen to a higher rate than in Russia. At one time it was us who tried to catch up and surpass the USA. Now, it’s their turn.

Rosstat decided to compare the price developments in Russia, the E.U. States, North America, Belarus and the Ukraine. This was for all intensive purposes a useful measure. Firstly, our prices depend on global ones. Secondly, if the neighbours are worse off, our own situation seems less critical.

Certainly, the prices in Russia increase rapidly. While in June the inflation rate was 1%, it reached more than 9% at the end of the year. Of course, it is a lot; especially considering the fact that this number has gone beyond the previously agreed price. And yet we are not among the leaders.

The country with the highest consumer price increase (+1.1%) is the USA. The second place of this dubious podium claimed Russia with 1% increase. The third place received Slovenia with 0.9% increase. The Ukraine (+0.8%), even if she didn’t make it on to the podium, is certainly the winner in increasing inflation in the first six months. During this time period the prices in the Ukraine rose by 15.5%. Second on the list is Latvia (9.2%), followed by Russia. The situation in the E.U. countries is much better. Their inflation rate in June averaged out at about 0.4%, in the half-year about 2.5%.

Still considering the food inflation the cause for the rising prices, Rossat experts decided to compare how much the prices for groceries have gone up in Europe and in Russia. Here, we find ourselves in the most inconvenient position, though only if we see the European Union as a whole. In our country the food prices rose by 1.1% in June and 12.9% since the beginning of the year. In the European countries the situation looks considerably more tranquil: the European average results are 0.3% and 3.5%.

However, if we look closely at individual countries the situation changes: Russia leaves the position among the leaders. No, she certainly doesn’t become an outsider, but this time we don’t even make it to the “strongest” three. The countries with the highest rise in prices in June are Great Britain (2.4%), Portugal (1.6%) and Latvia (1.4%).

Now, how come the European Union as a whole managed to achieve the pleasant results mentioned above? The answer is simple. The Rosstat notes that in a number of countries the food prices dropped mainly due to the seasonal factor: vegetables and fruits became cheaper. For example, in Bulgaria the food prices dropped by 3.1% on Cyprus and in Greece by 2% and 2.1% and in Finland by 1.2%.

Our country couldn’t do without the food price deflation either. In June the prices for milk products and eggs dropped by 2%. Fruit became cheaper by 0.8%. In other words, the seasonal factor struck Russia as well. (Yes, it does affect the prices for milk products and eggs. After all, in the summer the cows are milking much better and the hens produce more eggs.)