RUSSIA: Russians grumble about price rises ahead of parliamentary polls

In Russia, where voters will elect a new parliament on December 2 and a successor to President Vladimir Putin in March 2008, prices for basic foods have soared in recent months - dairy product prices have doubled and the price of bread prices has rocketed this year in line with world grain prices. The price hike has to some extent dented the high popularity of the pro-Kremlin United Russia party, which Putin will lead in Sunday's parliamentary polls. The price rises have forced the Kremlin to intervene, and impose measures temporarily freezing prices. But it's not Moscow's wealthy who are angry and frustrated. They may grumble that the price of their favourite chocolate eclair has jumped to 90 roubles (3.80 USD) from 50 roubles, but it's the millions of Russians who count each rouble and live mainly in the regions who are feeling the pinch. In early November, around 1,500 pensioners marched through Russia's second city of St. Petersburg banging frying pans and shouting slogans against Putin. At the local market in the town of Klin, some 200km north of Moscow, shoppers, wrapped in heavy coats and carrying plastic bags, browsed and inspected prices. Some shoppers in Klin directly blamed the Russian president for their predicament, saying state pension increases were in no way sufficient to buffer against price rises. "When there was a live broadcast with (President) Putin talking to the regions, I tried to call for half a day, but I could not get through because the line was busy all the time. I would have simply told him, Vladimir Vladimirovich, don't embarrass yourself and your government, and don't humiliate us pensioners, 140 roubles (about USD5.5) what can you buy from that when everything increases a thousand fold, can you imagine that?" said pensioner Lyubov Dmitrievna. Others were shocked at the way prices have soared over the last few weeks. "I can't keep up with it. Just recently I bought sour milk for 10 roubles and then a week later it was 26.60 roubles, and now I just saw it costs 30.60 roubles. So, in this way, our pension is not worth anything," said another pensioner, Ala Permikova. Most Russian pollsters believe the inflation issue will not alter the outcome of the polls on Sunday. "More than 50 percent (of voters) are preparing to vote. And they will vote for United Russia, and they will vote for the Communist Party. And according to our latest data, these will be the two parties who will definitely enter parliament. And inflation has nothing to do with this, that is the problem," said Marina Dmitrievna, an expert from the Moscow based Levada Polling Centre. Putin is credited with restoring order in Russia after the chaotic 1990s as well as presiding over an economic boom, fuelled mainly by oil and gas revenues. Dmitrievna added that Russia's politicians have avoided dealing with specific issues and specific interest groups, and as a result in the run-up to the polls, not many people were prepared to draw a direct link between politics, politicians and everyday issues. "The people do not associate the activities of the existing political parties with their everyday situation and the situation of our country. And the political parties do not articulate the interest of the different groups in our society," she added. Irina and Alexander But (pronounced as "boot") are an example of Russia's new middle class. Alexander is an engineer, and Irina works as a training manager at a local phone company. They have three children, two sons aged 6, and 13, and a daughter aged 18. They are a two income family, and yet they also have felt the impact of the recent rise in prices. "Let's take this piece of cheese for example, we already tried to buy the cheapest of its kind, and it is not good quality. And this piece of cheese will have to last us for a week, I will not be able to buy more. Before, we could buy a piece at least two or three times bigger than this one," said Irina, after the family had returned home from a weekly shopping trip. However, when asked about who he thought was responsible for Russia's soaring inflation, Alexander said the blame cannot be put wholly on the country's politicians. "I don't think we can blame one individual for everything. I think this is a natural process, it is part of the growing development of our economy, it is part of the birth of an economy. I think that is the reason, not Putin. I think whoever comes to power, let's say (Vladimir) Zhirinovsky or a Yabloko representative, or whoever else, it will be exactly the same, they will not be able to stop this process, they can maybe slow it down artificially, but in the long-term this will only make things worse," he said. Russian food retailers have said they are ready to consider extending an anti-inflationary price freeze until after the country elects a new president next March to shield voters from the effects of record-high grain prices. Around 20 Russian firms are now considering a two-month extension to their agreement to freeze the prices of staples such as bread, milk, sunflower oil and eggs until January 31. Inflation is particularly sensitive to food prices in Russia, which make up about 40 percent of the consumer price index compared with nearer 15 percent in the European Union. An extension of the price freeze, designed to curb inflation that is set to overshoot the government's 8 percent target this year, would ease pressure on the Kremlin, although economists have criticised the measure as Soviet-style intervention.

ITN Source | November 30, 2007

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