Russians face credit crunch for holiday season amid high inflation
"Republic" writes that the celebration of the New Year and Christmas, which Orthodox Christians observe at the beginning of January, will be more modest and, for many, on credit this year. This is due, in part, to high inflation, which, according to official data, is over 9.5 percent.
In the forthcoming third year of the invasion of Ukraine, Russians are facing a financial challenge related to New Year's festivities. The increased prices of essential products and services mean many are taking out loans to organise holiday shopping. Officially, inflation in Russia is 9.5 per cent, but consumers perceive it much higher.
A financial market survey by Compare, cited by "Republic," shows that 11 percent of Russians will take out a loan to cover the costs of holiday shopping. Most loan applications come from Moscow, where residents spend approximately a monthly salary on gifts and holiday meals.
The prices of Christmas trees have increased by 50 percent and red caviar by 33 percent. Russians plan to spend an average of 5,000 roubles on holiday food, approximately £103. The price increases also apply to tangerines and travel, which have become a quarter more expensive.
Faced with rising costs, Russians increasingly turn to homemade preserves and products from their gardens. Vodka mainly comes from illegal sources, and bread is baked at home. Only 8 per cent of Russians plan to spend more than 50,000 roubles (approx. £1,030) on holiday food.
Popularity of domestic trips
Despite financial difficulties, Russians are not giving up on travel. Domestic trips remain very popular, especially to regions such as Krasnodar Krai or the Moscow Oblast. Interest in unusual destinations like Kamchatka and Sakhalin has also risen.
Overseas travel has become significantly more expensive, with costs doubling. Russians eagerly book trips to Thailand, Egypt, and Turkey despite this. The rise in prices does not deter them from planning winter holidays.
