Central Bank: Russians spend large portion of income on food

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(Interfax – February 6, 2013)

The share of food and beverages (including alcohol) in the consumer basket of Russians is one of the highest in the world, said the Central Bank. That share is 37.7% in Russia, versus 23.1% in Brazil, 21.6% in South Africa, 19.1% in Japan, 5.3% in the USA and 13.5% in Germany. In India, the share is 49.7%.

The Central Bank also identified rising food prices as one of the major sources of inflationary risk for the Russian economy (inflation hit 6.6% in 2012). Currently the fate of future harvests in Russia and internationally remains highly uncertain, but there are no identifiable factors that would lead to price increases in the near future, the Central Bank reported.

Meanwhile, global food prices have been dropping since October, reported Bloomberg. While prices will remain high in 2013-14, the situation will be more stable than last year, according to the UN.