Russian consumers feel themselves in a tight spot as high inflation persists
The shelves at Moscow supermarkets are full of fruit and vegetables, cheese and meat
MOSCOW — The shelves at Moscow supermarkets are full of fruit and vegetables, cheese and meat. But many of the shoppers look at the selection with dismay as inflation makes their wallets feel empty.
Russia's Central Bank has raised its key lending rate four times this year to try to get inflation under control and stabilize the ruble's exchange rate as the economy weathers the effects of Russia's military operation in Ukraine and the Western sanctions imposed as a consequence.
The last time it raised the rate — to 15%, doubled that from the beginning of the year — the bank said it was concerned about prices that were increasing at an annualized pace of about 12%. The bank now forecasts inflation for the full year, as well as next year, to be about 7.5%.
Although that rate is high, it may be an understatement.
“If we talk in percentage terms, then, probably, (prices) increased by 25%. This is meat, staple products — dairy produce, fruits, vegetables, sausages. My husband can’t live without sausage! Sometimes I’m just amazed at price spikes," said Roxana Gheltkova, a shopper in a Moscow supermarket.
Asked if her income as a retiree was enough to keep food on the table, customer Lilya Tsarkova said: “No, of course not. I get help from my children.”
Without their assistance, “I don’t know how to pay rent and food,” the 70-year-old said.
Figures from the state statistical service Rosstat released on Nov. 1 show a huge spike in prices for some foods compared with 2022 — 74% for cabbage, 72% for oranges and 47% for cucumbers.
The Russian parliament has approved a 2024-2026 budget that earmarks a record amount for defense spending. Maxim
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