Russian Butter Prices Skyrocket, Sparking Theft Wave
Russia’s economy is facing a tough time. Despite initial resistance to Western sanctions, the country is now feeling the pinch of war costs. Consumer goods are getting more expensive.
One example is butter. Its price has jumped 25.7% since December 2023. This is much higher than Russia’s inflation rate of 8.6%. As a result, people have started stealing butter from supermarkets.
The reasons for this are clear. Russia’s National Wealth Fund (NWF) has lost most of its money. It had $140 billion in 2022 but now has only $55 billion. This fund is crucial to keeping the economy stable.
The ruble, Russia’s currency, has also fallen sharply. The central bank‘s benchmark interest rate is now very high at 21%. This makes it hard for people and businesses to spend money or invest in new projects.
Experts predict that Russia’s growth will slow down dramatically over the next year. Consumer spending will suffer, and business investment will decline.
The impact of these changes can be seen in public opinion. People are getting less confident in Putin‘s regime. The official approval rating has dropped to its lowest point since the invasion of Ukraine.
Analysts say that Russia may have to choose between funding a war or supporting consumers. This is similar to what happened in the Soviet Union during the 1980s, when energy price fluctuations showed up budget weaknesses.
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