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Wednesday, December 17, 2014

Russia sees pain with higher prices for everything

Well, the oil price drop definitely hurt Russia. 

Then, we have the sanctions.

We also have the sharp drop in the Russia's Rubble currency.

What's next?


The Russians definitely are feeling the pinch now, as they are facing higher prices for everything.

It's more expensive to buy eggs, dairy products, poultry and vegetables now. Apple halted the online store there, just three weeks after an increase in the price of an iPhone 6 for about 25% to 39,990 rubles...even then, the value of that iPhone sales when converted to dollar already has plummeted to about $585 from $847.

The same thing goes to McDonald's. The company increase the price of Big Mac by 2.2% to about 94 rubles....only to see the value drop from $1.77 to $1.35 in the intervening days. 

Renault-brand cars have been increased by 8% in Russia.

Now, most Russians believe they have to snap up consumer goods before prices continue to go up.

The ruble yesterday sank beyond 80 per dollar, a record low, before rebounding after Economy Minister Alexei Ulyukayev denied the government would turn to impose restrictions to stop Russians from converting money into dollars.

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