Russian butter prices soar as inflation sparks security measures
The price of butter has risen by an average of 25.7% in Russia since December last year, according to data from the Russian statistical office. Inflation is impacting Russians so significantly that in stores, packs of this product have started to be placed in anti-theft boxes.
Russian leader Vladimir Putin stated that the country's war-time economy is balanced enough to provide both weapons for the military and butter for ordinary citizens, Reuters notes. However, it seems things are not going so well, and inflation is increasingly troubling consumers.
Official data indicate that butter prices have surged by over 23% from the beginning of the year to October, especially in major cities like Moscow. Reuters reporters found that in the capital of the Russian Federation, the price of a high-quality pack of butter increased by 34% since the start of the year to 239.96 roubles, which converts to approximately £1.90 according to today’s exchange rate.
Russian media are reporting more thefts of butter. On 29 October, it was reported that two foreigners in Moscow "robbed" a Pyaterochka supermarket, absconding with 25 packs of butter.
"The Moscow Times" reports that news of the thefts has led some chain stores to lock products in anti-theft boxes. It's not difficult to find examples on social media.
Increasing problems for Russia's war-time economy
Why such a significant crisis? Media point to rising prices for milk, fuel (and thus transportation), and wages. Reuters notes that the Russian Central Bank raised interest rates by 200 basis points to 21% in October, the highest level since 2003. It is officially forecast that inflation in Russia will reach 8-8.5%.
Dmitry Patrushev, the Deputy Prime Minister responsible for agriculture, stated in October that the government would monitor butter prices. He met with major milk producers and retailers. The politician added that imports of butter have been intensified, and Russia expects large shipments from Turkey, Iran, and India, among others.
Jim O'Neill, former chief economist at Goldman Sachs, told Reuters that the crisis is the result of huge Russian military expenditures, specifically on the invasion of Ukraine. He believes that the situation will not improve for Russians in the medium or long term.
"The Moscow Times" notes that butter is not even the product experiencing the most significant price increase in Russia. Data from the statistical office show that potato prices have increased by 56.4% since the beginning of the year.
