Russians Flock to Stores to Pre-Empt Price Rises
December 17th, 2014Via: AP:
Russian consumers flocked to the stores Wednesday, frantically buying a range of big-ticket items to pre-empt the price rises kicked off by the staggering fall in the value of the ruble in recent days.
As the Russian authorities announced a series of measures to ease the pressure on the ruble, which slid 15 percent in the previous two days and raised fears of a bank run, many Russians were buying cars and home appliances — in some cases in record numbers — before prices for these imported goods shoot higher.
The Swedish furniture giant IKEA already warned Russian consumers that its prices will rise Thursday, which resulted in weekend-like crowds at a Moscow store on a Wednesday afternoon.
Shops selling a broad range of items were reporting record sales — some have even suspended operations, unsure of how far the ruble will sink. Apple, for one, has halted all online sales in Russia.
“This is a very dangerous situation. We are just a few days away from a full-blown run on the banks,” Russia’s leading business daily Vedomosti said in an editorial Wednesday. “If one does not calm down the currency market right now, the banking system will need robust emergency care.”
More: Bank Run Possible
Does anyone else think it’s strange that in a currency collapse the public is flocking to IKEA rather than stocking up on essentials?
I would be cleaning out the local smokehouse of smoked salmon to get us through the winter. Or buying cigarettes or toilet paper to trade.
How will a new couch or TV or car help you in a collapse?
@ alvinroast
Good catch. Surprised that slipped by me – because I actually hate IKEA.