Russians are increasingly cutting back on food purchases as rising prices outpace wage growth, signaling a potential shift in consumer behavior and economic challenges. Recent data indicates a slowdown in food sales, raising concerns about the population’s standard of living and the overall economy.

In the first quarter of the year, food sales saw a modest increase of only 2.1% compared to the previous year. This figure is significantly lower than the 6.8% growth observed in the same period of 2024.

Analysts attribute this slowdown to a substantial increase in prices, which is outpacing the growth of Russians’ incomes. This forces people to save on essential goods, impacting the demand for various products.

The decline in demand has affected even products with historically stable demand, such as chips, cream, seafood, and ready-made salads. Consumers are prioritizing basic necessities like bread and kefir, while reducing purchases of non-essential items.

Consumers are minimizing expenses by seeking discounts, postponing large purchases, and switching to cheaper brands. Over 60% of Russians anticipate further price increases, contributing to a self-fulfilling prophecy of reduced demand and economic strain.

Officially, food prices have increased by over 12%, but many people perceive increases of 20-30% in certain categories. Real incomes are not keeping pace, as indexations for public sector employees and pensioners fail to match the rising cost of living.

A decrease in food sales is a significant indicator that cannot be overlooked. It signals that Russians are beginning to save on basic necessities due to high inflation, impacting retail trade and slowing down domestic demand.

Economists suggest measures such as regulating trade markups on domestic products to address the issue of rising prices. The focus should also be on ensuring access to quality food to safeguard public health.