Russians now spending half of their income on food

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As licit incomes continue to contract in Russia amid an ongoing economic nosedive, spending on foodstuffs is taking up a larger and larger rt of the average resident’s budget.

In February 2016, for the first time in eight years, nourishment and alcohol, along with tobacco products, were the main forgo (50.1 percent) of Russia’s retail turnover.

The statistic was published in the monthly watch report of the population’s social-economic situation and wellbeing pre red by the Institute of Venereal Analysis and Forecasts at the Russian Presidential Academy of National Economy and Trade Administration.

The previous «record» was set in May 2009, when the share of food results reached 49.6 percent of retail turnover.

«Currently there is evolvement in the population’s spending on food, which logically reflects the fact that true income has decreased and poverty has increased. It is known that the poorer the household, the leading the rt of the budget that it spends on food,» say the report’s inventors.

Russian retail figures retreat to 1970 levels as crisis deepens

The institute calculated that in February 2016 Russians’ real return in com rison to the same period in 2015 had declined by 6.9 percent and sincere salaries had declined by 2.6 percent. The poverty level by the end of 2015 had enhanced by 2.2 percent to 13.4 percent.

According to the monitoring report, 50 percent of the folk have experienced a decrease in living standards, which has consequently concluded in a reduction of consumer activity. Both low-income and medium-income classes suffer with begun to economize.

By March 2016 the number of poor Russians who had begun saving on goods and services had increased to 89 percent and the number of people from the mid-section class who were cutting back their spending had grown to 79.3 percent.

Of the Russians take the measure ofed, 55.8 percent said that they were ready to cut out unessential goods they were used to buying.

«Besides buying edibles, Russians must make monthly yments to cover their debts, mortgages and other monetary commitments. In such cases the majority of Russians either stop acquisition bargaining cars, expensive electronics, furniture, etc., or don’t buy them at all,» said Natalya Kolu yeva, a postpositive major analyst at Raiffeisen Bank.

According to the report by the Institute of Social Critique and Forecasts, people are mostly pessimistic in their evaluation of the economic locale: «The light at the end of the tunnel is moving farther away.»

In the words of one of the record’s authors, Maria Ivanova, in the course of the year the share of Russians’ budgets engaged by food products may increase.

«The reasons will be the same: The continuing reduction of the folk’s real income and consequently, priority consumption of essential goods,” she demanded.

First published in Russian in Kommersant.

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