Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Russians to Spend More Than Half of Their Income on Food

E. Yegorov / Vedomosti

Soaring inflation and a reduction in real wages could have Russians spend half of their income on food by the end of this year, a news report said Monday.

A survey of Russian retail prices by VTB Capital cited by business daily Vedomosti predicted spending on food could account for between 50-55 percent of household income by the end of 2015, up from 40 percent last year.

Inflation and a reduction in real wages, linked to the devaluation of the ruble, are to blame for the predicted hike in food expenditure, the report said.

The ruble has been hit hard by a global drop in the price of oil and Western sanctions against Moscow for its involvement in Ukraine.

Inflation on food products hit a high of up to 22 percent in February, but this figure is expected to stabilize in the second quarter and will hover around 9.6 percent by the end of 2015, Vedomosti cited the VTB analysts as saying.

Food price inflation has been compounded by a drop in the value of Russians' real wages, which are expected to decrease 6.8 percent year-on-year by the end of 2015, the report added.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more