Russians feel financial pressure as living costs soar

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Food prices surge for ordinary Russians

“Life is becoming more expensive,” says Alexander, a Moscow-based advertising specialist. In just one month, his food budget rose over 22%, from 35,000 roubles (£330; $450) to 43,000 (£406; $555).

With Russia’s economy hovering between stagnation and decline, ordinary citizens are beginning to feel the financial pressure of the Kremlin’s war in Ukraine, now approaching its fourth anniversary.

Essentials become less affordable

Alexander notes the cost of almost all essential goods has increased in local supermarkets, including eggs, chicken, and seasonal vegetables. Even his daily Americano surged 26%, from 230 to 290 roubles.

Rising prices are driven by Russia’s war-focused federal budget, Western sanctions, and the withdrawal of foreign investment, alongside higher living costs across the country.

Inflation impacts households differently

Average food basket prices highlight the steep increases. A selection of 59 basic items, tracked by the BBC in Moscow supermarkets, rose 18.6% over two years – from 7,358 roubles (£63; $83) in 2024 to 8,724 (£83; $112) in January 2026. Fruit and vegetable prices jumped almost 15%, while dairy products soared 41% due to rising farm costs, staff shortages, and expensive loans.

VAT also increased from 20% to 22% at the start of 2026, directly linked to war-related defence spending.

Families adjust budgets and habits

Nadezhda, 68, lives in Moscow with her husband on a state pension. She can no longer afford beef and relies on cheaper fish, with her entire 32,000-rouble (£302; $413) pension now spent on food.

Kristina, a mid-40s marketing specialist, has begun scrutinising discounts and protein content, while avoiding dining out. Cooking for two at home now costs over 2,000 roubles (£18.91; $25.85), double the previous price.

Economic risks ahead

After slowing sharply in 2025, Russia’s economy risks entering a downturn. Falling oil prices and US sanctions on major trading partners such as India threaten the federal budget. Borrowing is costly due to high interest rates, leaving the government with few options but higher taxes or public spending cuts.

Economist Tatiana Mikhailova notes: “There is a trend towards stagnation and a possible decline in GDP… Every time oil prices fall, a recession is possible in Russia.”

Ordinary Russians feel the squeeze

For now, Russia’s economy shows no formal contraction, but households continue to feel rising living costs. Inflation, taxes, war spending, and sanctions combine to push everyday essentials out of reach for many, while savings and budgets are stretched to the limit.


Also read: Russia-Ukraine peace talks end without breakthrough
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