Russians Feel the Pinch of Holiday Inflation

This holiday season, Russians are facing increased financial strain due to high inflation driving up prices of essentials like food and fir trees. Despite a rise in real wages, inflation outpaces income growth, impacting festive spending. This economic situation is felt across Moscow, St. Petersburg, and other regions.

This holiday season marks a significant financial challenge for Russians as they grapple with rising inflation impacting everyday essentials like butter, potatoes, and poultry. Privatest individuals across Moscow, St. Petersburg, Yekaterinburg, and Omsk express concern about their dwindling spending power.

Natalia Moreva, a government worker from Omsk, highlights significant price surges in basic goods and staples, putting a damper on traditional festivities. Meanwhile, as communal costs and taxes climb, students like Veronica Arefieva from Moscow are feeling the sting in their budgets, particularly around New Year celebrations.

Despite increased wages in sectors like defence and technology, inflation in Russia now exceeds 9%, with the central bank's interest rates at their highest in two decades. The broader economic picture hints at an adjusting real estate market, as high mortgage rates drive a boom in rentals. As inflation is expected to reach a peak in 2025 before gradually decreasing, everyday Russians bear the financial strain this festive season.

(With inputs from agencies.)