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Mordor: Huge inflation and currency devaluation
  • Rising prices for raw materials, logistics and packaging components are forcing baby food manufacturers to raise prices as well. The largest player in the Progress segment (FrutoNyanya brand), with a market share of over 30%, notified chains of an average price increase of 15.5% in February. The company's example will be followed by competitors, analysts are sure. Kommersant has a copy of the letter from the company's CEO Natalya Medunova to retailers. She attributes the indexation to the continued rise in prices for key raw materials due to the shipping crisis, market expectations amid the pandemic, and adverse weather conditions for crop production.

    According to Ms. Medunova, prices for fruit concentrates increased by 26.8-33.3% on average. Fresh and frozen fruits and vegetables went up by 30.9%, raw milk - by 20%, buckwheat, oats and rice - by 19%. Also, the cost of tin lids more than doubled, prices for cardboard and corrugated board increased by 50%, aluminum and plastic - by 25-100%. Finally, shipping costs rose by up to 30%, the letter says.

    Being colony, despite energy prices, all big corporations are managed such way that they send 80% of money back to US and EU via offshores intermediaries. Such way it is also possible to devalue currency, so local citizens won't be competitive and such good reason arises to move lot of produced food and goods into land of real owners.

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  • At the end of 2021, consumer inflation, calculated on a basket of goods that people actually buy daily, reached 18%. Such data was provided by the Romir research holding.

    The Romir deflator index takes into account 200 consumer goods (FMCG, Fast Moving Consumer Goods).

    Inflation calculated using this method is more than double the official figure of Rosstat - 8.4%.