After the Great Patriotic War, the financial system of the USSR was in a difficult situation. In order to restore the purchasing power of the rouble and improve the welfare of the population, monetary reform was initiated at the end of 1947, during which banknotes and deposits were changed out, as well as starting a gradual reduction in commodity prices. The first stage of the price reform was carried out by an order of the USSR Ministry of Trade dated December 14, 1947, which established fixed reduced prices for a limited list of food and industrial goods, which included bread, flour, sugar, butter, sunflower oil, beef meat and other goods.
By the beginning of 1949, thanks to the rise of the national economy, a reduction in the cost of goods and an increase in production, it became possible to carry out another price reduction for a wider range of goods in high demand. The corresponding joint resolution of the Council of Ministers of the USSR and the Central Committee of the CPSU(b) was published on February 28, 1949 in the newspaper Pravda. Since March 1, 1949, the prices of bread, meat, sausages, fish, butter, wool and silk fabrics, furs, household goods and electrical goods, cameras and binoculars has reduced by 10%, the price of woollen garments has decreased by 12%, hats and dresses have become cheaper by 15%, and cheeses, perfumes, jewellery, bicycles, tableware and household appliances fell in price by 20%. In addition, the price of hay has decreased by 30%, and mixed feed has become 20% cheaper.
Due to the decrease in prices made on March 1, 1949, the purchasing power of the rouble increased significantly, its exchange rate improved compared to the exchange rate of foreign currencies, real wages of workers increased and the costs incurred by the peasants for the purchase of industrial goods decreased. “In this undertaking, the Bolshevik Party and the Soviet government demonstrated with renewed vigour the great concern for the working people, for their prosperity, for the growth of well-being and culture,” the newspaper Pravda reported in an editorial on March 1, 1949.
Source: CPRF, translated by Beorn And The Shieldmaiden
Read also April 1 — The Day of Price Reductions in Stalin’s Time


