Russian Citizens will Spend Half of Their Salary on Food

Product price will increase by 9.6% within a year.

04.Mar.15 12:45 PM
By Abigail Richards
Photo oreninform.ru

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Russian Citizens will Spend Half of Their Salary on Food

Russian citizens will be forced to spend half of their income on food and products. Such opinion was shared by experts of VTB Bank. It is based on current situation in the country and growth of product price. Specialists are sure that Russians will spend about 50-55% of their salaries on food.

For example, this rate was about 36% in autumn 2014. However by the end of the year it increased up to 40%. If the situation will keep going on in such way, prediction is very likely to come true. This is mainly due to price increase of products as well as reduction of income.

At the same time VTB Bank specialists also note that Russian Federation has passed its peak of product inflation which was 21.8-22% in 2014. According to their forecast price growth will slow down in the second quarter of 2015.Nevertheless, total product price will increase by 9.6%.

Experts are also sure that such price growth will increase the share of products in consumer’s basket due to reduction of their incomes. They have reduced by 8% in January in comparison with the same period in 2014. However total reduction of income will be 6.8% throughout the whole year.

It should also be noted that retail turnover in Russia was reduced by 4.4% in 2015. Food product sales have also decreased by 5.5% while sales of other products reduced by 3.5%.

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