Russian butter prices soar: Thefts and anti-theft boxes emerge
According to data from the Russian statistical office, the price of butter has risen by an average of 25.7% in Russia since December of last year. Inflation is impacting Russians to such an extent that sticks of this product are now being placed in anti-theft boxes in stores.
5:38 PM EST, November 5, 2024
Russian leader Vladimir Putin stated that the country's war-time economy is balanced enough to provide weapons for the military and butter for ordinary citizens, Reuters reports. However, the situation seems less favorable, and inflation is increasingly troubling consumers.
Official data indicate that butter prices have increased by over 23% from the beginning of the year to October, with even higher increases in major centers like Moscow. 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, which converts to approximately $2.35 according to today’s exchange rate.
Media in Russia are reporting an uptick in thefts of the product. On October 29th, it was reported that two foreigners in Moscow "robbed" a Pyaterochka supermarket, making off with 25 packs of butter.
"The Moscow Times" reports that the news about thefts has led some chain stores to lock products in anti-theft boxes. Examples are not hard to find on social media.
Increasing problems for Russia's war-time economy
What is causing this significant crisis? 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, stated 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, particularly 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 shows that potato prices have increased by 56.4% since the beginning of the year.
