Fuel crisis drives surge in food prices across Russia

A fuel crisis in Russia is emerging as a significant driver of inflation, pushing up consumer prices through higher transport and production costs, according to data cited by The Moscow Times’ Russian service.

Rising gasoline and diesel prices have already strained household budgets and are increasingly feeding into logistics and agriculture, with knock-on effects in supermarkets.

From late May to July 6, prices for staple vegetables rose sharply, with potatoes and onions up 27.7%, cabbage 18.8%, beets 17.2%, and carrots 13.1%. Among the fastest-growing categories were also leisure-related expenses, including holidays on the Black Sea coast (+7.5%) and in Southeast Asia (+8.8%), as well as chicken (+6.1%).

Fuel prices climbed steeply over the same period, with gasoline up 8.9% and diesel rising 10.5%. Annual fuel inflation has approached 20%, marking its highest level in 15 years. Analysts say fuel costs are increasing nearly three times faster than overall inflation, while shortages are making deliveries both more expensive and slower.

Economists warn that higher fuel costs are being passed through to end prices via transport and production channels. In June, this was particularly visible in newly harvested vegetables, as well as in price increases for sugar (+2.9%), apples (+2%), medicines (+1–2.3%), animal feed (+1.8%), smartphones (+1.7%), fish (+1.4%), and bread (+1%).

Russia’s central bank has expressed concern that inflationary pressures could intensify. According to polling by FOM, 49% of respondents already expect price growth to accelerate over the coming month.

By Tamilla Hasanova