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The Russians will not be able to save money: housing prices are rising twice as fast as inflation

Utilities in Russia in 2017 rose by 4.6%, according to Rosstat. Growth rates almost twice as high as consumer inflation for the year was 2.5%. In December, during a press conference, President Putin calls for the need to urgently deal with the regulation of these tariffs so that the citizens do not pay exorbitant prices. In particular, the President proposed to exclude managers (AMS) from the scheme of payment of utility bills. The Ministry is preparing the relevant amendments to the laws. Experts believe that cutting off the UK from the cash flow do not curb the raging rates.


photo: Gennady Cherkasov

For utilities to tear up the population at exorbitant prices — such a conclusion can be drawn from the calculations of Rosstat. It would seem that consumer inflation in the past year has stayed at a record low of 2.5%. Recall that the previous minimum was reached in 2016, when price growth slowed to 5.4% from 12.9% a year earlier. But for those who pay for the “communal”, this achievement went unnoticed.

“From 2005 to 2016, inclusive, the share of expenditures on housing and communal services in total consumer spending rose from 8.3% to 10.1% — said an investment analyst Global FX Ivan Karyakin. — Dubious “records” belong to Ryazan (12.4% in 2016) and Smolensk (14.5% in 2016) regions”. According to statistics, last year services of public utilities rose by 4.6% — this figure is the national average, in some regions the growth was more substantial.

It is not surprising that the savings on purchases means citizens are not hoarded, not allowed on what is really needed, and paid them considerably more costly residential services. Cold water surged on average by 5.5%, heating by 3.8% and gas and electricity by 4.1%. Accommodation in buildings of state or municipal housing stock became more expensive by 7.6%. As for the owners of privatized apartments, for them the maintenance and repair of housing (including payment for overhaul), has risen over the year by 5.3%.

Vladimir Putin saw the root of evil in the presence of mediators and during the December press conference stated the need “in the near future to cut management companies in housing and communal services from cash flow.” According to him, they play a mediating role, ferrying funds for tenants recursivesum. Experts do not quite agree that rates are rising only because of the “malicious” actions of the UK, and their exclusion from the scheme “customer — management company — resource-supplying organization” solve the problem.

Of course, there are unscrupulous management companies, who sometimes exceed their authority and do not lose the ability “to put on” the population for money. But not because of them single, rising rates. “Sometimes authorities of certain regions increase the fee due to special reasons, often inexplicable to the population, — said the first Vice-President of “OPORA Russia” Paul Segal. — It all depends on the power of a specific region, and sometimes from weather and climatic conditions”.

In 2018, the authorities are determined to bring housing prices under control. The Ministry of construction, for example, already is preparing amendments to the relevant laws. It is known that the Ministry intends to oblige the UK to warn the population about the upcoming increase in prices for utilities, as well as to reveal the inside story of the tariff structure.

Paul Segal believes that in 2018 the rising cost of utilities will be minimal: “not more than 2-3%, based on the level of inflation.”

The Chairman of the Duma Committee on housing policy and housing Galina Khovanskaya, for his part, expressed the hope that the increase will be in the range of 3-4%. Much less optimistic currency strategist at GK TeleTrade Alexander Egorov. “Expect miracles in 2018 is not worth it, he said. — Most likely the prices will be around 6-8%, with projected inflation of 4%”. As for the initiatives of the head of the Ministry Mikhail men to take the tariffs under tight control, then, according to Egorova, he will not take any measures, at least until the presidential election, which will be held in March. But even if UK and cut off from cash flow, according to experts, there will be invented new methods to provide “extra services” for money.

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