FAS PROPOSED TO DISCUSS THE RESPONSE TO PRICE SHOCKS IN THE CONSUMER MARKET

The antimonopoly service proposes to move in the direction of protecting the population from occasional price shocks instead of price regulation.

Timofey Nizhegorodtsev, Deputy Head of the FAS Russia, at the session entitled "Are the actions against soaring prices a necessary step or a path to empty shelves", which was held as part of the "Retail Week", noted that the measures taken to moderate prices for sunflower oil and sugar were not subject to state regulation, as they were short-term, and agreements between producers and retails were concluded on a voluntary basis. While price regulation is a permanent price-setting mechanism for certain goods.

«At the same time, continued price regulation in the consumer market with elastic demand and high competition almost never achieves its purpose. The exception is the drug market, which is characterized by inelastic demand», Timofey Nizhegorodtsev said.