Inflation and theft: Butter prices soar in Putin's Russia
According to data from the Russian statistical office, the price of butter has increased by an average of 25.7% in Russia since December of last year. Inflation is significantly affecting Russians, leading stores to place sticks of this product in anti-theft boxes.
Russian leader Vladimir Putin stated that the country's wartime economy is stable enough to provide both weapons for the military and butter for ordinary citizens, Reuters highlights. However, it seems that the situation is not as favorable, and inflation is increasingly troubling consumers.
Official data indicate that butter prices have risen by over 23% from the beginning of the year to October. In major centres like Moscow, the increase is even steeper. Reuters reporters found that in the capital of the Russian Federation, the price of a high-grade stick of butter increased by 34% since the beginning of the year to 239.96 rubles, approximately $2.35 at today’s exchange rate.
Russian media are reporting more thefts of the product. On October 29th, it was reported that two foreigners in Moscow "robbed" a Pyaterochka supermarket, stealing 25 packs of butter.
"The Moscow Times" reports that news about thefts has prompted some chain stores to lock products in anti-theft boxes. It is not difficult to find examples on social media.
Increasing problems for Russia's wartime economy
Why such a significant crisis? The 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 forecasted that inflation in Russia will reach 8-8.5%.
Dmitry Patrushev, the Deputy Prime Minister responsible for agriculture, said in October that the government would monitor butter prices. He met with major milk producers and retailers. The politician added that imports of the product have been intensified, and Russia expects large shipments from Turkey, Iran, and India, among others.
Jimi O'Neill, former chief economist at Goldman Sachs, told Reuters that the crisis results from 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 highest price increase in Russia. Data from the statistical office show that potato prices have increased by 56.4% since the beginning of the year.
