Rising Prices Force Russian Families to Cut Back
Darya Stepanova, a mother of two in a small town on the eastern side of the Ural mountains, has been forced to cut back on everything from baby food to nappies due to soaring prices. The Stepanov family is just one of millions of Russian families facing tougher economic conditions as a result of the war in Ukraine and the sanctions imposed by the West.
Living on the 50,000 roubles ($550) a month her husband earns, Stepanova now carefully inspects prices when she goes shopping for bargains to make ends meet. She has noticed a significant increase in prices over the past five years, with baby milk quadrupling in price and prams now costing three times as much at 60,000 roubles.
The impact of the falling rouble against the U.S. dollar has made imported goods more expensive for Russian families, significantly impacting their ability to afford basic necessities. As a result, many families have had to cut back on treats and eating out.
While price rises are affecting families across the globe, Russia’s wartime economy has caused particularly high inflation for Russian voters, raising concerns about the impact it may have ahead of the 2024 election.
The West’s imposition of tough sanctions on Russia was an attempt to undermine its economy and force a change of course over Ukraine. However, Russia has continued to sell its oil to world markets, while the government has increased military spending and salaries for contracted soldiers.
Despite the initial positive outlook, Russian economist Igor Lipits believes that the official data on poverty levels are poor and the overall picture for the Russian economy is worse than the rosy announcements from the Kremlin leadership suggest.
With at least 15.7 million people living below the poverty line, many are struggling to make ends meet. Lipits estimates that around 20 million people could be in or on the verge of poverty in Russia, and as a result, many are seeking ways to cut down and find discounts to survive.
As families like the Stepanovs continue to struggle, the economic impact is becoming a critical issue, not just for those affected directly, but for the larger political implications in the upcoming elections.
– Reuters