Inflation punches on Russian wallets

Russians are losing purchasing power as consumer prices hike.

Consumer price growth in northern Russian regions reaches its highest level since 2008.


The price for a normal Russian food basket is on a rapid increase as inflation in the country surges.

In November, the consumer prices in five northern Russian regions reached their highest level in six years. According to figures from Patchwork Barents, a regional statistics and analysis tool for the Barents Region, the average inflation in five northwest Russian regions in November alone increased by more than one percent.

The trend continued in December. In Murmansk, monthly prices on basic foodstuff like frozen fish, eggs and beef increased more than eight, twelve and six percent respectively, figures from the regional office of the Russian Statistical Service (Rosstat) show.

Inflation in Russia has been stable between 6-9 percent since 2009, and federal authorities initially planned for a five percent price increase in 2014. Instead, Russia might be heading towards inflation rates similar to the ones of the early 2000s. Then, the annual inflation increase ranged between 11-20 percent.

Preliminary figures from Rosstat show that consumer prices in the country as a whole in December 2014 increased 11,4 percent year-on-year, Bloomberg reports. According to the business daily, inflation in Russia is expected to peak at about 15 percent in the first quarter of 2015.

Combined with the major currency loss, and the economy going into recession, the higher inflation will significanlty affect people’s personal economy.