Moscow Frees Bread Prices; Shops Not Told
Russia stumbled closer to a market economy Tuesday when the city of Moscow freed prices for milk and bread--but forgot to tell shoppers and shopkeepers.
“Moscow passed a resolution that prices on milk, two kinds of bread, salt and sugar would be freed from today, but smaller shops may not have received this information,” said Vera Devyatova, head of the city government price department.
The confusion was symptomatic of doubts surrounding parts of Russia’s bold economic reform program. Investors have complained that information is available too late or that laws are changed without informing the public.
City shopkeepers said they knew nothing of the Moscow government’s plans.
“As far as I know, prices are only going up on April 15,” food shop manager Galina Prokhorovna said.
She said shopkeepers will probably charge about eight to 10 rubles for a quart of milk after prices are freed, instead of two rubles. A ruble is worth about a penny.
Officials began the process of freeing prices in January, removing most state price controls and putting essential goods out of reach of millions of ordinary people.
In related news, President Boris N. Yeltsin said Tuesday that Russia will put off freeing energy prices until the end of May or early June.
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