This holiday season, many Russians are struggling with rising costs as inflation pushes up the price of essentials. From Moscow to Siberia, the country’s poorest are feeling the pinch, cutting back on festive celebrations and adjusting their budgets to cope with the financial strain, on Friday, the 27th of December, reports Reuters.
As Russians traditionally spare no money on New Year celebrations, rising costs are dampening festive spirits for many, forcing them to make difficult decisions to preserve holiday traditions.
“Prices have risen noticeably,” said Natalia Moreva, a 58-year-old government worker in Omsk. She cited basic goods such as flour, bread, chocolate, fruit, vegetables and meat, which have become significantly more expensive.
Although her income is stable, she admitted: “Going to the shop used to be more affordable. The holidays promise to be modest.”
Dinara, a student in Yekaterinburg, shared similar thoughts. “Much more expensive,” she said.
“In previous years, New Year’s Eve spending was more or less on budget. Now the costs are much higher, maybe three or four times higher than before,” she added.
Wages have risen all over Russia, mainly due to rising wages in the defence and technology sectors. But for many, wages have failed to keep pace with inflation above 9%, even though the central bank kept interest rates at 21%, the highest inflation in more than 20 years.
Vyacheslav, a 73-year-old pensioner living in Omsk, says he has noticed that prices are rising day by day.
“Of course, this is not very pleasant and comfortable for people at the moment. We understand that the situation in the country is difficult at the moment, but I still wish that food prices would not rise so fast,” he said, adding that the price of his favourite cheese has increased by 15-20% since September, to around 850 roubles.
Inflation in Russia could reach 9.8% by the end of the year, with a peak expected in April 2025, before starting to decline, central bank spokesman Andrei Gangan told Interfax news agency.
Russia’s central bank kept borrowing rates unchanged last week despite expected hikes. However, high mortgage rates, as high as 30%, are discouraging home purchases and fuelling rapid growth in the rental market.
“Utilities are getting more expensive, (as are) taxes, and it is very noticeable,” said Veronika, a student from Moscow. “When you go to the shop, a loaf of bread that used to cost 20 roubles now costs 50 roubles.”
Another student from Moscow, Sergei, said that chocolate prices are “scary”.
In St Petersburg, Ramiz, a Christmas tree seller, said that some customers could not afford a tree even with discounts. “I wish everyone holiday greetings… and that next year everyone can afford a Christmas tree!” he added.