“Consequences of sanctions. In Russia, a record increase in food prices for 9 years — mass media January 16, 11:35 Share: Food prices are rising in Russia (Photo: Reuters) The consumer price index in Russia for the year increased by 9.52% (after an increase of 7, 42% in 2023), and annual food inflation reached 11.05%, the highest since 2015, when food rose in price by 14%. All this is happening despite the Central Bank raising the interest rate”, — write on: ua.news
Food prices are rising in Russia (Photo: Reuters)
The consumer price index in Russia increased by 9.52% over the year (after growing by 7.42% in 2023), and annual food inflation reached 11.05%, the highest since 2015, when food prices rose by 14%.
All this is happening despite the Central Bank raising the interest rate to the maximum in two decades and the authorities’ attempts to control prices in retail chains.
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The Moscow Times writes about this with reference to Rosstat.
“According to the results of December, prices on average increased by another 1.32% compared to November, when monthly inflation set a record since April 2022 (1.43%),” the publication says. — “And the final annual inflation index was among the highest in the last 15 years: according to official statistics, prices grew more strongly only in 2022 (11.94%) and during the economic crisis after the annexation of Crimea (by 11.35% in 2014 and 12.91% in 2015).
At the same time, the price of potatoes increased by 90.5%, cabbage – by 42.6%, onions – by 46.5%, beets – by 32.3%, butter – by 35.2%.
The increase in prices for milk reached 18.2%, for sour cream – 19.2%, for cheese – 14.2%.
Apples became more expensive over the year by 20.2%, cucumbers by 22.1%, lamb by 23.1%, beef by 12.9%.
“In the form of inflation, Russian citizens feel the consequences of sanctions and their negative effects on the economy,” the publication says. — “And the sharp drop in the ruble exchange rate at the end of the year, after which the dollar was fixed above 100 rubles, promises a gloomy forecast for the beginning of 2025.”
In 2024, the Central Bank of the Russian Federation raised the key rate three times, trying to slow down inflation in the economy, which for the third year in a row, against the background of military spending, is experiencing a sharp increase in the money supply.
“But having raised it to 21%, the highest level in two decades, the Central Bank unexpectedly took a break in December – after officials and billionaires attacked Elvira Nabiullina with criticism,” the publication says. — “According to the Central Bank’s own forecast, inflation will continue to accelerate and will reach its peak in the first quarter of 2025. In January-February, it can accelerate to 11.5%.”
As reported, due to the fall of the ruble, imported fruits, tea and coffee are becoming more expensive for Russians.
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