Monday, October 29, 2007

Prices Controls: Aaahhhhhh Perestroika!


Russian officials introduced some Soviet-style price controls this morning. In an effort to curb rising anti-Putin sentiment, Russia’s biggest food producers have “agreed” to freeze food prices at Oct. 15 levels on staple foods like bread and milk. Most retailers will not be allowed to mark up prices on these goods higher than 10%.
Yeah, history shows what a success price controls have always been. Good thinking, guys.
The Russian economy ministry, according to the Financial Times, is also considering increasing its new 10% wheat export tariff to 30%. Rumors of such a hike have pushed Chicago wheat prices up 6% this week.

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