Russians are spending a significant portion of their income on food, with the food expenditure index reaching 34.6% in April, a 6% increase compared to April of the previous year. This high percentage indicates a relatively low level of well-being among the population, as it leaves less money available for other essential needs.

The ROMIR Institute for Human Studies reported that the food expenditure index increased by 1.5% compared to March. Experts explain that a lower index signifies a higher level of well-being because families can afford to spend more on non-food goods and services.

According to Alexey Klimovsky from the National Expert analytical agency, Russian families spend a larger portion of their income on food compared to the European average of 10-15% in developed countries and about 20% in China.

Several factors contribute to this situation, including stagnant real incomes, high inflation, rising food prices due to sanctions, reduced imports, and increased logistics costs.

Economist Vasily Koltashov points out that high food expenditures indicate a large portion of the population is struggling with income. He argues that inflation is a major problem, reducing people’s real incomes and potentially demotivating them from working.

Koltashov believes these figures may influence the Central Bank’s decision-making regarding its credit policy, especially considering the ongoing challenges of inflation and its impact on the population’s financial health.