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High inflation, which has risen amid the war in Ukraine, has made the festive season much more difficult for many Russians. According to the Russian central bank, inflation could reach 9.8% by the end of the year, affecting prices of almost all goods, from bread to Christmas trees.
Everyday expenses become a burden
“Prices have risen significantly, even for basic products such as flour, meat and vegetables,” says Natalia Moreva, a resident of Omsk, adding that her family will be spending the holidays modestly this year.
Dinara, a student from Yekaterinburg, notes that this year’s expenses have tripled or quadrupled compared to previous years:
“We have to save even on holiday goods.”
Among the most noticeable changes are the prices of chocolate, which have risen “enormously”, according to Moscow resident Sergei Soreshorin.
Prices and real incomes
Despite the fact that real wages have officially increased in the country, especially in the defence and technology sectors, most Russians complain that their incomes are not keeping pace with the rising cost of living.
For example, Vyacheslav, a pensioner from Omsk, says that his favourite cheese has risen in price by 15-20% in just a few months, and the price of bread in Moscow has jumped from 20 to 50 rubles.
The impact of war and military spending
The increase in military spending after the start of the full-scale invasion of Ukraine, the mobilisation of hundreds of thousands of men and the flight of many Russians from the country have caused an acute shortage of labour. Together with high lending rates, this has created additional difficulties for businesses and individuals.
At his annual press conference on 19 December, Russian President Vladimir Putin acknowledged that inflation was an “alarming signal” but assured that the economy remained stable:
“The unpleasant and bad thing is the rise in prices. But I hope that if macroeconomic indicators are maintained, we will cope.”
Holiday spending in question
Despite the Kremlin’s claims of stability, this year many Russians will have to make significant savings, even on traditional holiday attributes. Even buying a Christmas tree is becoming a luxury for some people.
Ramiz, a Christmas tree seller in St Petersburg, notes:
“There are people who buy wood without asking about the price. But there are also those who cannot afford it even with a discount.”
Amidst economic instability and rising prices, many Russians are facing the holidays with uncertainty about the future.
