1992 Liberalization of prices in Russia

25 years ago, on January 2, 1992, price liberalization began in Russia. 90% of retail and 80% of wholesale prices have been exempted from government regulation. At the same time, control over the price level for a number of socially significant consumer goods and services (bread, milk, public transport) was left to the state. Simultaneously, wage liberalization and retail trade freedom were introduced. Thanks to this, the trade deficit was overcome. However, this was achieved at the expense of a sharp drop in the incomes of the bulk of the population and the actual confiscation of their savings.