Food price increases in Russia were twice as high as the official inflation rate
The cost of a minimum basket of 33 staple food items in Russia rose by 8.5% from January through July, which is nearly double the official inflation rate for that period, which stands at 4.75%.
According to Rosstat data, prices for certain staple goods, such as chicken, fish, sugar, and vegetables, rose several times faster than the overall inflation rate, and since the start of the full-scale invasion, the cost of the food basket has increased by a factor of 1.5.
Surveys indicate that citizens themselves estimate the actual rise in prices to be nearly twice as high as the official figures. Russian consumers are forced to spend about 40% of their income on food, a record high over the past 16 years. This has led to a decline in foot traffic at neighborhood stores and upscale retail chains, as the population is shifting en masse toward a frugal consumption model and cutting back on spending even on food.
Source: “The Moscow Times.”
As a reminder, consumer sentiment in Russia is rapidly deteriorating, confidence in the economy is declining, and anxiety is growing over a possible new wave of mobilization. This was reported by the Foreign Intelligence Service of Ukraine.
After three years of unexpected economic growth, Russia is facing a sudden slowdown—war expenses, inflation, and falling oil prices have begun to weigh on an economy that, until recently, seemed resilient to sanctions.
Consumer lending in Russia has fallen to a six-year low.
