Russian Inflation Makes U.S. Price Rises Look Tame

WSJ ^ | 20-MAY-2022 | Paul Hannon

[SpeedyInTexas]

Sanctions are hitting Russian families at the grocery store as food prices rise amid surging inflation, which is already running at double the rate of the West.

Consumers are falling further behind as wages stagnate in a slowing economy. The situation is expected to get worse as inventories run down, sanctions take effect and buyers adopt strategies that could push inflation higher.

[SpeedyInTexas]

"The impact is harsher on Russian families because a larger share of their household budgets goes to food. According to the U.S. Department of Agriculture, food accounted for nearly 29% of the average Russian household’s spending in 2020, compared with 7.1% in the U.S. and 9.4% in the U.K."

[SpeedyInTexas]

https://archive.ph/QnOUA#selection-123.5-123.55

[Yo-Yo]

But the Ruble has hit new highs vs. the USD...

[SpeedyInTexas]

The Ruble is not freely trading.

On the black market, Ruble is much lower.

[Yo-Yo]

Posted earlier today:

https://freerepublic.com/focus/f-news/4064886/posts

RUBLE SMASHES FOUR-YEAR HIGH AGAINST US DOLLAR

[O6ret]

This gives me no comfort.

[Vermont Lt]

In a pretty closed market. Open the Russian stock market and currency exchanges with the West. For a single day. Russian investment would collapse and the Ruble would pretty much look like one of those cryptos from last week.

[alloysteel]

Question - Whos is sanctioning the United States, that causes OUR prices to rise at historically very high rates?

Russia and Putin went out of their way to p*ss off the rest of the world, what has the US and Joe Biden done to p*ss off most of their (former) friends and allies?

Rhetorical, question, really.

[SpeedyInTexas]

“RUBLE SMASHES FOUR-YEAR HIGH AGAINST US DOLLAR”

Its not freely floating. If it was, foreigners would sell. Foreigners can not sell today.

[Renfrew]

The only reason the ruble is holding is that Russia is offering a 14% interest rate. That has kept the currency from collapsing, but it also is destroying their economy.

A farmer who needs to borrow for the spring planting season is going to be paying 20%+ interest on the loan. Most farmers are thus having to plant less.

[SpeedyInTexas]

“that causes OUR prices to rise at historically very high rates”

There are many reasons, but a big reason was the stimulus money the Gov pumped into the economy over the past 2 years.

[griswold3]

RFD-TV
Russian 1OTR 2022 GDP 5X of US (up 3.5%)

[SaveFerris]

(This gives me no comfort.)

Yeah. Same here.

[GaltAdonis]

Stolichnaya 1.75L
$29.09

[HamiltonJay]

“Hey, at least it’s not as bad as Russia.”....

Wow, how far we have fallen

[SpeedyInTexas]

“Wow, how far we have fallen”

Or how far Russia has fallen...

[MercyFlush]

“The Ruble is not freely trading. On the black market, Ruble is much lower.”

Last time I checked an unofficial Moscow trading site was running around ₽200 for $1.

Today the range is ₽280 to ₽350 for $1.

To be fair this isn’t necessarily a reflection of the true value of the ₽ to the $ but instead is also going to reflect the impact of too many rubles chasing too few dollars or Euros. Demand is outstripping supply and the suppliers are charging a premium.

[Mr Radical]

The article states that inflation in Russia is running at double the rate in the West, without giving any numbers (at least not this side of their paywall).

I can’t speak for Russia, but my household energy charges have risen by 351% since the beginning of this year. That’s not a misprint: three-hundred and fifty-one percent. And that’s the price increase caused by the EU ripping up their contracts with Russia back in 2021, i.e. before February 24th 2022.

[Susquehanna Patriot]

The comment-poster said it was a rhetorical question LOL.

But your answer is hitting on it. It is a subtle way to condition ad turn the public mind that (1) Russia caused U.S. inflation (not the leftist policies/laws signed off by Trojan horse Xiden and well in progress ebfore Russia invaded Ukraine); (2) the sanctions, put forth by the brilliant and noble-minded Xiden, were a US shared sacrifice for a worthy cause (else you are an uncaring, selfish Putinista); and (3) people in the US may not like its current $ituation, but compared to Russia we are not suffering.

This is like being told to keep banging one’s head against the wall until you are told to stop. And when you stop, you are enlightened by others that you should feel better because at least you aren’t banging your head against the wall at the moment.

[dfwgator]

This is the planet Algon, fifth world in the system of Aldebaran, the Red Giant in the constellation of Sagittarius. Here an ordinary cup of drinking chocolate costs four million pounds, an immersion heater for the hot-water tank costs over six billion pounds, and a pair of split-crotch panties would be almost unobtainable. (cut to a budget-day-type graphic, with a picture of the product and the price alongside) A simple rear window de-misting device for an 1100 costs eight thousand million billion pounds and a new element for an electric kettle like this (picture of electric kettle) would cost as much as the entire gross national product of the United States of America from 1770 to the year 2000, (graphic of American GNP) and even then they wouldn’t be able to afford the small fixing ring which attaches it to the kettle.