Results of our studies

MOSCOWFebruary 16, 2009. Russian Public Opinion Research Center (VCIOM) presents data on whether Russians observe the decline of prices of goods and services in their regions, if no, then why; how they estimate the inflation rate and how they cope with the growing prices.

 

Despite of the fact that in for particular goods and services went down in some countries (due to financial crisis), the majority of Russians have not noticed it in their region (83%).  Mostly residents of Central and North-Western Districts (88%), as well as respondents from the southern part of Russia (86%) tend to express this view. However every tenth (11%) say that there is a slight decrease in prices for some products and services; most of those who think so are residents of Urals (32%). Only 2% noticed price reduction.

 

Russians regard state policy (8%) and economic crisis (7%) to be the major reasons for the absence of a reduction in price. The share of those who think that this is caused by irresponsibility and inactivity of authorities, greed of entrepreneurs, bureaucracy and corruption, US dollar increase, and producers who suffer from lower price are 5% for each group. This is followed by such reasons as absence of state regulation of prices (4%); other 4% blame regional authorities. Those who think that absence of prices reduction results from inflation and import of goods are 3% for each. 2% put the blame on monopolists, 1% point out oil and gas price reduction. Almost half of Russians (48%) were undecided.  

 

Thus, there is no deflation in Russia, there is inflation!  But inflation rate, estimated by people, is slowing down. So, in February 2009 the share of Russians who thought that inflation was very high has decreased from 79 to 58% compared with June 2008. On the contrary, the share of those who consider inflation rate moderate has grown - from 16 to 30%. Those who noticed high inflation rate are mostly residents of Central and Southern Federal Districts (64% for each). Respondents who say the rate is moderate are often residents of Siberia (38%), Far East (36%), North-Western region (35%) and Volga region (34%). The larger the inhabited locality is, the more its citizens tend to estimate inflation as being high: 71% of Muscovites and Saint-Petersburgians against 51% of rural area citizens. Vice versa, average inflation rate was pointed by the residents of middle, small towns, and villages (32-35%).

 

Most noticeable price growth was observed in utilities payments: 67% of Russians think so (there were 49% of such respondents in October 2008).  As for the rest of the products, then compared to October previous year there is a decrease in the share of those who mark considerable increase in price for the following products: meat products (from 66% to 53%), fruit and vegetables (from 53% to 43%), dairy products (from 56% to 34%), bakery (from 51% to 27%), petrol (from 45% to 14%).

 

Among products which prices slightly went up dairy products are on the top - 43% of Russians think so (this share has increased from 31% since October 2008). Russians more often mention that prices for such products as bread (since October 2008 this share has grown up from 34% to 40%), meat (from 23% to 30%), fruit and vegetables (from 29% to 38%) have also increased. There is a decrease in the share of Russians which say that only petrol and utility services prices have slightly went up (from 14% to 11% and from 23% to 19% respectively).

 

The share of Russians who think prices have not changed is growing. Among such products bakery holds the first position: 27% think that this price remained at the same level (11% thought so in October 2008).  Other 17% of respondents think that petrol price (11% in October) has not changed, 14% say this is dairy products (6% in October), 10% point out fruit and vegetables (9% in October), 8% say this is meat and meat products (4% in October).

 

The initiative Russian opinion poll was conducted on February 7-8, 2009. 1600 respondents were interviewed at 140 sampling points in 42 regions of Russia.

The margin of error does not exceed 3.4%.

 

In some countries there is a decrease in prices for particular goods and services resulted from economic crisis.  Is it observed in your region?

(close-ended question, one answer)

 

Total respondents

Federal Districts*

CFD

NWFD

SFD

PFD

UFD

SFD

DFD

Yes, in general prices are falling

2

1

3

1

3

1

2

10

Prices are falling, but only for particular goods and services

11

8

7

10

12

32

9

15

I haven`t mentioned any price decrease in recent 1-2 months

 

83

88

88

86

82

62

83

72

Hard to tell

3

3

3

3

3

5

2

3

Why do you think there is no price decrease in your region

What is it related to?

(open-ended question, up to three answers from those who did not mention price decrease)

This is state policy

8

Economic crisis

7

This is a result of irresponsibility and inactivity of authorities

5

Greed of entrepreneursBusiness doesn't want to lose profits

5

Bureaucracy, corruption

5

Producers suffer losses

5

This deals with US dollar increase

5

There is no state regulation of prices

4

Regional authorities should be blamed

4

Inflation

3

Import of goods, we produce nothing

3

The impact of monopolists

2

Oil and gas price reduction

1

Other

2

Hard to tell

48

How would you estimate inflation rate in recent 1-2 months?
(close-ended question, one answer)

 

5.02

-

6.02

 

2005

19.02

-

20.02

 

2006

28.07

-

29.07

 

2007

20.10

-

21.10

 

2007

22.03

-

23.03 

 

2008

24.05

-

25.05

 

2008

7.06

-

8.06

 

2008

12.07

-

13.07 

 

2008

16.08

-

17.08

 

2008

25.10

-

26.10

 

2008

7.02

-

8.02

 

2009

Inflation is very high

62

62

52

82

74

71

79

78

77

72

58

Inflation is moderate

26

26

35

13

18

21

17

16

19

22

30

Inflation is negligible

5

6

7

1

2

2

2

2

1

3

5

Hard to tell

7

6

6

4

6

6

3

3

3

3

7

How would you evaluate the changes in the prices of various goods and services in recent 1-2 months?

 (close-ended question, one answer per each position)

 

July  2007

October  2007

24-25 May

 

2008

7-8

June  

 

2008

26-27

July

 

2008

23-24August 

 

 2008

18-19

October

 

 2008

7-8 February

 

2009

А) Bakery

 

Prices dramatically decreased

-

1

1

1

0

0

0

0

Prices slightly decreased

0

0

0

0

0

1

1

1

Prices has not changed

9

10

4

4

5

8

11

27

Prices slightly increased

44

37

39

26

24

24

34

40

Prices dramatically increased

43

49

53

66

68

63

51

27

Hard to tell

4

3

4

2

2

3

3

5

B. Dairy products

 

Prices dramatically decreased

-

1

1

1

0

0

0

0

Prices slightly decreased

0

0

1

1

1

0

1

1

Prices has not changed

20

2

3

4

6

7

6

14

Prices slightly increased

42

18

32

23

21

23

31

43

Prices dramatically increased

26

74

58

68

67

63

56

34

Hard to tell

12

4

5

4

5

6

6

8

C. Meat and meat products

 

Prices dramatically decreased

0

1

1

1

0

0

0

0

Prices slightly decreased

1

0

0

0

0

0

0

1

Prices has not changed

15

5

5

3

5

6

4

8

Prices slightly increased

38

29

31

21

18

19

23

30

Prices dramatically increased

34

56

58

70

71

68

66

53

Hard to tell

12

8

6

5

6

7

7

8

D. Fruit and vegetables

 

Prices dramatically decreased

1

1

1

1

0

0

0

0

Prices slightly decreased

7

0

2

1

4

1

1

1

Prices has not changed

19

10

6

4

10

9

9

10

Prices slightly increased

32

35

34

25

23

26

29

38

Prices dramatically increased

29

41

52

65

57

56

53

43

Hard to tell

12

12

6

5

6

7

8

9

E.  Petrol

 

Prices dramatically decreased

-

-

-

1

0

0

0

2

Prices slightly decreased

-

-

-

0

0

1

11

34

Prices has not changed

-

-

-

1

1

4

11

17

Prices slightly increased

-

-

-

14

10

12

14

11

Prices dramatically increased

-

-

-

73

79

72

45

14

Hard to tell

-

-

-

12

9

12

18

22

F. Public utilities payments

 

Prices dramatically decreased

-

-

-

1

0

0

0

0

Prices slightly decreased

-

-

-

0

0

0

1

1

Prices has not changed

-

-

-

6

14

12

19

7

Prices slightly increased

-

-

-

20

18

20

23

19

Prices dramatically increased

-

-

-

67

63

59

49

67

Hard to tell

-

-

-

5

6

8

9

7

 

*Abbreviations

CFD - Central Federal District

NWFD - North-Western Federal District

SFD - Southern Federal District

PFD - Volga Federal District

UFD - Urals Federal District

SFD - Siberian Federal District

DFD - Far-Eastern Federal District

 

 

Note: Using materials from the site www.wciom.ru or www.wciom.com, as well as distributed by VCIOM,

 the reference to the source (or hyperlink for the electronic media) is obligatory!

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