Rising food prices in Russia push citizens to downgrade consumption habits

Rising food prices in Russia have become a major source of concern for many citizens, with the cost of basic goods continuing to soar. 

A break-in at a small food store in Yekaterinburg, Russia, might not normally make global news, but this incident caught widespread attention, Caliber.Az reports per foreign media.

CCTV footage from Dairy Place, a local store, shows a person smashing the door and rushing to empty the cash register, while another heads straight to the fridge, stealing 20 kilograms of butter, according to Russian media reports.

The store owner shared on Telegram that the theft highlighted how butter has become as valuable as “gold”. 

Dairy Place is not the only store hit by such butter thefts. A wave of similar incidents has led some stores to lock their butter in secure containers. The price of a standard 200g stick of butter has risen to about 200 rubles (roughly $2), marking a 30 per cent increase since December 2023, according to Rosstat data.

The theft of such a basic staple has brought attention to the escalating price hikes in Russia.

"The cost of basic foods has been rising for the past three years. It's getting worse every day, and it's accelerating, especially this year," said Stanislav, a Moscow resident.

"It depends on the type of food, of course. Some prices have dropped, like buckwheat. It was much more expensive during the Covid-19 pandemic in 2020, but now it's three times cheaper. However, that's the only example of a price decrease. All other food prices are increasing. I think it's around 10-40 per cent per year," he added.

Russia's annual inflation rate reached 8.5 per cent in October, significantly higher than the central bank's 4 per cent target. In response, the bank raised interest rates to 21 per cent last month — the highest in more than 20 years — with another rate increase expected in December.

Despite the high interest rates, there has been little sign of slowing price growth, with food inflation particularly noticeable for shoppers. Dairy products, sunflower oil, and vegetables (especially potatoes, which have seen a 74 per cent price increase since December) are among the items experiencing continued price hikes, according to weekly data from Rosstat, as demand continues to surpass supply.

Anton Barbashin, a Russian political analyst and editorial director of the journal Riddle, explained that price hikes are unavoidable for most citizens, "literally half of all Russians spend most of their earnings on food, so they feel inflation the most."

"Product inflation is now the greatest driver for inflation, as such. So prices for basic goods, food, and other personal items are increasing the most," he added.

"So far, the strategy for most Russians has been to downgrade their consumption patterns, opt for lower-quality goods, and postpone any long-term purchases. However, this stress is not spread out evenly. Moscow is still barely feeling the troubles. The most hit are [people in] the smallest towns and rural areas," he said.