Pensioner Zinaida: “I only buy so much that I don’t starve to death”
Russia’s war of aggression against Ukraine has contributed to rising inflation and cost increases in many countries. On Thursday, the president admitted that the Russian population is also affected – something he has so far wanted to keep quiet about.
And when the Russian central bank today decides to leave the interest rate unchanged, it becomes increasingly clear that there is a major imbalance in the Russian economy.
– It is part of the Russian propaganda how well things are going for Russia, but we have to see through that, states Torbjörn Becker, head of the Eastern Economic Institute at the School of Economics, who believes that the inflation ordinary people face is significantly higher than the official figure of around nine percent.
Everything is more expensive
That the Russian ruble is now rapidly falling in value is felt in the wallets of people in the suburb of Dedovsk, on the outskirts of Moscow.
– Prices have risen quickly and a lot in the last two years, if you used to be able to buy a bag of groceries for 1,500 to 2,000 rubles, it is impossible now, says the language teacher Viktoria to the AFP news agency.
She says she wants peace, so that life can return to normal.
Increased military spending
Russia has converted to a war economy and military spending has increased by 70 percent this year. The $125 billion expenditure represents 40 percent of government spending.
– The ordinary Russian will not be better off by the production of rockets and bombs, they will slowly get worse, notes Torbjörn Becker.
However, he believes that the Russian economy can be tough for a long time to come, without the collapse of the banking system and currency, despite clear signs that the economy is overheated and that there is an imbalance.
Putin mentioned inflation
Government control of the economy drives inflation, which erodes the economy of ordinary Russians. In the long run, it can lead to social unrest. This now seems to worry even President Putin, who at yesterday’s annual press conference in Moscow took the word inflation in his mouth, even though he described the economy in positive terms.
– For the economy as a whole, Russia’s situation is stable, despite external threats, but it is clear that inflation is an alarming signal, Putin said.
“No to war”
That President Putin’s so-called special operation in Ukraine is not very popular in Dedovsk can be seen in illegal graffiti messages. “No to war” and “Russia without Putin” are spray-painted on the walls.
– What can we expect? The war continues and war requires resources, says 75-year-old pensioner Viktor Markov.
He has bought bread, potatoes and chicken at the market. He chooses extra prices now, to make the pension enough.
Potatoes 70 percent more expensive
In the market, it is clear that people are finding it difficult to deal with the price increases. Potatoes are reported to have become more than 70 percent more expensive this year, and butter 30 percent more expensive. Pensioner Zinaida Kudriavtseva has stopped buying expensive medicine, clothes and some food to make ends meet:
– I limit my purchases, I don’t buy beef, it’s expensive for me and rarely cottage cheese either, because everything costs too much. I only buy enough to not starve to death, I’ll be honest.