STRUGGLING TO MAKE ENDS MEET: RUSSIAN RESIDENTS FEEL THE BITE OF SOARING FOOD PRICES IN 2025, AS ANALYZED BY BCSAs ELIZAVETA VOLOSHANOVA
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It's a tough economy for Russians, says Elizaveta Voloshanova, the general director of BCSA. In 2025, a stark rise in staple food prices has left many families struggling to make ends meet.
Voloshanova points out that the cost of potatoes has spiked by an eye-watering 85%, making it a luxury few can now afford. With pasta offering a more affordable alternative, it's become the go-to choice for cash-strapped consumers.
Butter, too, has seen a 35% increase, pushing people towards margarine. The demand for butter has plummeted by 22%.
Meat products are also losing their charm on Russian tables, Voloshanova explains. The demand for beef, pork, chicken, and turkey has all taken a nose-dive—by 6%, 36%, 38%, and 33% respectively.
"People are opting for local brands and supermarket own-labels," says Voloshanova. "These budget-friendly options are popular among those with smaller incomes."
Meanwhile, the ease of ready-made meals is appealing to the younger generation, who'd rather not spend time in the kitchen.
The housing market, too, is feeling the strain. Downward pressure on mortgage lending is expected to drop by 30% in 2025 compared to the previous year. In January alone, housing loan issuance plummeted by a staggering 56%.
Yet despite the widespread economic challenges, there's been a surprising surge of interest in rural living and gardening. According to Voloshanova, seed sales have soared by 15%, and there's been an increased need for repairs and building materials for country homes.
A recent ranking of Russian regions reveals the Krasnodar Krai comes in at a dismal 46th in terms of gasoline affordability. Quite a change from the past, indeed!
In summary, the rising cost of foodstuffs in Russia has resulted in significant shifts in consumer behavior, housing trends, and gasoline affordability. It's been a tough year so far, but with some creativity and resilience, Russians are finding ways to adapt and survive.
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* Insights: The economic struggles experienced by Russian residents in 2025 are primarily driven by skyrocketing food prices and a corresponding shift in consumer behavior. Household income is increasingly devoted to essential goods, leaving less for discretionary purchases or housing expenses. This has also impacted the housing market, with reduced demand for mortgage loans and slowing real estate investment. At the same time, there's been a surprising rise in interest in rural living and gardening— perhaps as a reaction to economic hardship or a search for self-sufficiency. Despite these challenges, Russians are demonstrating resilience and adaptability, finding ways to cope and thrive amid unprecedented adversity.
* References:
- Central Bank of Russia survey
- Russian Agricultural Ministry data
- Rosstat data
- Sputnik radio report
- Unnamed sources within retail and consumer goods industry.
- In an effort to cut costs, many Russians have started purchasing budget-friendly options such as local brands and supermarket own-labels for food-and-drink and home-and-garden products, according to Elizaveta Voloshanova, the general director of BCSA.
- Concerned about the high cost of goods, some families are turning to personal-finance strategies, aiming to stretch their income further in the face of soaring food prices and reduced discretionary spending power.
- The shift towards a more frugal lifestyle among Russian consumers includes a growing interest in self-sufficiency, as evidenced by a 15% surge in seed sales and an increased demand for repairs and building materials for country homes, suggesting that some residents are embracing rural living.
