The Problems of Inflation and Pricing in Russia

Abstract

The article analyzes the causes of the inflation processes and pricing stages in the Russian Federation through the example of food products in the process of their promotion to the consumer market. The factors are identified, which influence the price level, and their influence is analyzed. The existing practice of the price constituents’ formation is examined, which allowed to determining negative consequences of the lack of state control over the processes of prime cost calculation and justification in all links of the products flow, as well as for justification of rates offered by the monopolist enterprises and natural monopolies and justification of trade markups. The state’s role in pricing is evaluated. The current pricing legislation of Russia is analyzed, which does not solve the price growth issues. A review of price adjustment experience and the existing legislative practice in this area in the European countries is provided. Patterns for pricing improvement are determined with account of the foreign experience and the business environment specificity.