Russian butter prices surge as thefts rise in supermarkets
The butter prices in Russia are skyrocketing, leading to increased supermarket theft. According to "The Moscow Times," prices have risen by as much as 25.7% since the beginning of the year. These are not the only products that are rapidly becoming more expensive.
From January to October 28, the price of butter in Russia rose 25.7%. This has prompted Moscow to increase imports of this product from neighbouring countries. Rosstat, the state statistical agency, confirms this data. The average price for a kilogram of butter is now 1,000 rubles, or approximately $11.50 CAD, which represents a 20% increase since January.
According to the Food Producers' Association, higher production costs and increased demand for ice cream and cheese have contributed to the rise in butter prices. "Ice cream and cheese are some of the reasons why the market for butter and cream is experiencing tensions," Artiom Below, head of the association, told the news portal Ura.ru on Friday. He says increased consumption in these production segments has generated "additional demand for cream."
The increase in butter prices has led to more theft in some supermarkets. Butter theft reports have prompted supermarkets to lock the product in plastic containers. Russia imports about 25% of its butter, mainly from Belarus, and recently brought in roughly 20,000 metric tonnes of the product from Turkey. Deputy Prime Minister Dmitry Patrushev, who oversees agriculture, said last week that the government will closely monitor butter prices.
Russia has a problem not only with butter prices
Although butter has become the latest symbol of inflation problems in Russia, it is not the product with the fastest rising prices. Rosstat reports that since the beginning of the year, potato prices have increased by 56.4%. Last year, rising egg prices were the main concern for Russian consumers, prompting President Vladimir Putin to take a stance on the issue. In response, Moscow increased butter imports from neighbouring countries to meet the growing demand.
Inflation becoming a bigger problem
The central bank has raised its inflation forecast 2024, indicating that inflation will reach 8-8.5%. This update significantly exceeds earlier forecasts ranging from 6.5 to 7%. Elvira Nabiullina, the head of the central bank, commented on these changes. She said that the current restrictive monetary policy does not conflict with key actions towards economic development that the government focuses on. She indicated that this strategy aims to protect citizens' wages, pensions, and savings from the impact of rising prices.
