Russian families are allocating a significant portion of their income to food expenses, exceeding the average observed in developed European nations and China. This trend highlights a relatively low level of financial well-being among the population.

In April, the food expenditure index reached 34.6%, marking increases of 1.5% compared to March and 6% compared to April of the previous year. This data, according to analysts, underscores that after covering food costs, less disposable income remains for other essential needs such as clothing, education, healthcare, and savings.

Experts attribute this situation to a combination of factors, including stagnant real incomes, persistent inflation, rising food prices influenced by sanctions, reduced import volumes, and increased logistical expenses.

Furthermore, high military spending, economic restructuring favoring the defense industry, and elevated key interest rates contribute to limiting investment in both real businesses and the social sector. Economists suggest that a potential improvement in this indicator hinges on price stabilization, growth in real incomes, and increased domestic food production, but these developments are unlikely in the current environment.

Economists also suggest that current inflation rate is one of the main problems, because the Central Bank can’t stop the increase in tariffs, but it can raise and maintain the same high rate in the fight against inflation. They believe indicators on food expenditures can be considered another reason for the Central Bank not to drastically change its credit policy.