Russian families are allocating a significant portion of their income, specifically 34.6%, to food expenses as of April, signaling a low level of financial well-being. This figure represents a 1.5% increase compared to March and a 6% increase compared to April of the previous year.

This situation, where a substantial portion of income is spent on food, surpasses the European average of 10–15% in developed countries and approximately 20% in China, highlighting the financial strain on Russian households. The high percentage spent on food leaves less available for other essential needs like clothing, education, healthcare, and savings.

Several factors contribute to this challenging economic reality, including stagnant real incomes, high inflation, rising food prices influenced by sanctions, reduced imports, and increased logistical costs. Furthermore, significant military spending, the restructuring of the economy towards defense, and high key interest rates are limiting investment in real business and social sectors.

Economists suggest that a decrease in the food expenditure index is possible with price stabilization, increased real incomes, and increased domestic food production. However, in the current environment, such improvements are considered unlikely. The current food expenditure indicators may influence the Central Bank’s decision-making regarding its credit policy.