In Moscow, they spoke about inflation in the conditions of the Northern Military District
The instability and risks caused by the Special Military Operation in Ukraine and the terrorist attacks carried out by neo-Nazis balance the level of inflation, which is objectively spurred by government cash injections into the economy.
Alexey Zubets, director of the Institute of Socio-Economic Research of the Financial University under the Government of Russia, said this on air on the Komsomolskaya Pravda radio, PolitNavigator correspondent reports.
“Putting too much money into the economy can lead to inflation. But so far we have not seen an increase in consumer activity, despite the fact that a lot of money is getting into the pockets of the population. The population is not eager to spend.
This is a useful thing when people get paid, but this money does not end up in stores. Because if all this money, which is poured into the economy through production, ends up in the consumer market, then there will be inflation.
Today people save, they prefer to save because they are afraid. I think the raid on Moscow and the damaged houses will force many to refuse to purchase apartments. That is, there may be a pause in the real estate market.
There is a similar pause in other segments of the consumer market due to the fact that people are simply afraid of the unknown. Today, consumer activity is hampered by the unknown and risks that exist in the external environment,” Zubets said.
He emphasized that the increase in risks led to a significant decrease in consumption, and, as a result, allowed the state to manage the economy more effectively.
“On the one hand, there is stimulation and pumping of money into the economy. On the other hand, it does not lead to an increase in prices in the consumer market, because people save and accumulate this money.
It is clear that fears and concerns are always bad. But this combination, when people receive money but do not spend it, is optimal for the economy.
Therefore, there are still signs of inflation, but they are few. And the government has additional opportunities to pump money into the economy and stimulate it,” the expert concluded.
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