Krasnodar, 16 March – Yug Times. Low inflation has a lot of pluses, but also there are some minuses.
Inflation in the Southern Federal District, including the Krasnodar region, has been showing record low values since the beginning of the year.
According to the regional branch of the Central Bank, in January 2018 inflation in the Southern Federal District was 1.9%, comparedvwith 2.1% in December 2017. The rise of prices for most goods and services did not go beyond 4% in all regions of the District. At the same time, the national inflation rate was higher (2.2%).
Based on the Krasnodar Statistical Committee’s data, the Central Bank calculated that food prices were the main drivers for the lowering, so that the yearly inflation was as low as 0.1%.
One of the advantages of low inflation is softening of the crediting policy. Traditionally credit rates are going down in such conditions, because what they consist of are the Central Bank’s rates plus interest.
Having to pay 20% interest is absolutely different from paying just 10%, however the rates would not go as far low as that. The Central Bank’s rate continues to be high — about 8.25%, because low credit rates may allegedly stimulate Russians to take more credits, which is not a good thing. Today an average Russian citizen owes different banks 150,000 roubles, or about five monthly wages. In Kuban, an average credit sum is currently a little more than 352,000 roubles.
“It becomes impossible to do any long-term planning, though this is the main condition for the investments to grow,” says our expert, economist Faina Kurziukova. “No innovation production, scientific and technological development may be possible without long-term planning and investments. Economic growth is possible under high inflation if stimulated by such outward factors as high prices for exported natural resources. But the activity of such factors may finish, which would undoubtedly stop the economic growth.”
Follow our news on Facebook
За всеми важными новостями следите в MAX, Telegram, во «ВКонтакте», «Одноклассниках», YouTube и на Rutube
