Russian Shoppers Regret Playing on Ruble Wheel of Misfortune - Bloomberg
Millions of Russian consumers who made panic purchases at the end of last year as the ruble plunged now regret their haste as the currency’s 2015 rally leads to lower prices. are reversing last year’s price increases as the ruble strengthens, so consumers would have been better off waiting rather than snapping up imported goods and services in a bet on higher prices down the road. Three months later, the 15,000-ruble ($290) tickets were being offered for as little as 8,600 rubles after the currency rebounded. Retail sales slumped for a third month in March, falling 8. 7 percent as real wages fell the most since 1999 amid an economic slowdown and consumer-price inflation that decelerated for the first time in eight months in April. The ruble gave up as much as 20 percent of its value in a matter of hours mid-December, prompting shoppers to bring forward purchases on concern that further declines would mean only higher prices of imported goods and services. A dollar now fetches about 50 rubles, after rising to a closing peak of 68 rubles from 40 rubles during the fourth quarter. Car Troubles Natalia Barbashova, a Moscow economist, drained her savings in December to pay 145,000 rubles for a fur coat made from imported mink. A few months later, the same item cost just 115,000 rubles after the ruble’s rally. Source: www.bloomberg.com
