PRICE INCREASES / RUSSIAN ROULETTE

Still reeling from political upheaval, the citizens of Russia this week were wrenched by an economic jolt: With the elimination of almost all government subsidies for consumer goods, prices have taken off.

The costs of many basic commodities have doubled, tripled, even quadrupled. But even at the new prices, such goods as sugar, salt, cooking oil and matches were not available in any of the 15 typical state stores visited by Times reporters. And there were long lines for bread, vodka and gasoline.

The average salary in Russia last year was 432 rubles per month; with the devaluation of the ruble, this is the equivalent of only $4 a month at the open-market rate of exchange, although officially it should be worth $758.

In raising prices, Russian President Boris N. Yeltsin also decreed immediate pay raises of 90% for government employees, soldiers and others in the state sector, such as teachers. Old pay ceilings for industrial workers were removed, and the workers are supposed to negotiate higher wages as inflation soars.

In ending most state subsidies, the Russian government said prices should be increased to cover production costs and increase profits--and that they could rise as high as the market would bear.

But the government imposed limits, ranging generally from 200% to 300%, for food and other items regarded as “daily necessities” to minimize the hardship on low-income families.

Typically, a Russian family spends more than half of its income on food, far more than an American family. But at the same time, the family pays very little to rent its government-owned apartment or cover medical treatment and has no school fees or tuition for its children.

THE NEW COST OF LIVING

The items listed are among those for which only “restricted” increases were allowed.

Amount of Time Amount of Product Price Average Russian Time U.S. Change in Rubles Must Work to Minimum Wage Buy product Earner Old New Before After Must Work to Price Price Increases Increases Buy Product BREAD 0.60 2.60 13 min. 57.6 min. 10.5 min. (one loaf, white) MILK 0.62 1.84 13.6 min. 40.9 min. 9.18 min. (one quart) VODKA 16.60 65.00 6.2 hours 24 hours 1.5 hours (one U.S. fifth) GASOLINE 1.59 4.54 35.3 min. 1.7 hours 15.7 min. (one U.S. gallon) SUGAR 1.09 3.18 24.2 min. 1.2 hours 5.9 min. (one lb.) SALT 0.05 0.18 1 min. 4 min. 2.9 min. (one lb.) MATCHES 0.25 1.00 5.6 min. 22.2 min. 8.6 min. (one kitchen-sized box) COOKING OIL 2.84 8.50 63 min. 3 hrs. & 28.2 min. (one U.S. quart) 15 min. * All sizes (generally the metric system in Russia) have been converted to U.S. measurements.

Compiled by Times Researcher Steven Gutterman