Russian Consumer Crisis Deepens as War Economy Strains Households
Nearly one-third of Russians now report being unable to afford basic groceries, according to recent surveys. The economic fallout from Putin's 2022 invasion of Ukraine has manifested in soaring food prices that outpace wage growth, with inflation hitting 6.8% despite central bank interventions.
Drone attacks plague border regions while urban centers face different battles. 'Prices are rising faster than wages,' notes Elena, a Moscow events manager switching to local brands as imported goods become unaffordable. The military spending that initially boosted GDP now fuels inflation that erodes 20% wage gains.
Consumer spending contraction reveals the limits of monetary policy. Last October's emergency 21% rate hike failed to address structural weaknesses, leaving stores shuttered and households rationing purchases. Real-time data confirms plummeting retail sales across all categories.
