I get frustrated with articles like this– Russia’s war economy can’t go on forever, given the significant interest rate and wage rises, and I’m curious to see how it will play out.
That said, butter might not be the best example to monitor, since it’s up *everywhere*- wholesale prices for Europe in general are up about 83% this year. In the US, it’s about 15% per FRED data (but up about 76% since late 2021), so a 25% rise might not be the specific indicator of Russia’s failed economic policies that the author implies.
‘I can’t believe it’s not butter!’
brest litovsk is almost in the eu. if that is luxury butter that has gone up because the competition from eu imports like kerrigold or lurpak or whatever has disappeared then this is likely a very cherry picked example.
Important point regarding these prices increase: Russians (average and poors) are already spending a truely big share of their budget in food (and alcohol), so a 25% increase has a much bigger impact for them than in US or EU.
No butter. Just guns made 50 years ago.
As long as the war is happening, putins regime will be ok in the short term. But over time the drop in QoL for russians and government debt will become unsustainable.
If the war ends, regardless how well it ends for russia, it will have a detrimental effect on russian economy because the demand created by the military industrial complex is suddenly no longer there.
6 comments
I get frustrated with articles like this– Russia’s war economy can’t go on forever, given the significant interest rate and wage rises, and I’m curious to see how it will play out.
That said, butter might not be the best example to monitor, since it’s up *everywhere*- wholesale prices for Europe in general are up about 83% this year. In the US, it’s about 15% per FRED data (but up about 76% since late 2021), so a 25% rise might not be the specific indicator of Russia’s failed economic policies that the author implies.
‘I can’t believe it’s not butter!’
brest litovsk is almost in the eu. if that is luxury butter that has gone up because the competition from eu imports like kerrigold or lurpak or whatever has disappeared then this is likely a very cherry picked example.
Important point regarding these prices increase: Russians (average and poors) are already spending a truely big share of their budget in food (and alcohol), so a 25% increase has a much bigger impact for them than in US or EU.
No butter. Just guns made 50 years ago.
As long as the war is happening, putins regime will be ok in the short term. But over time the drop in QoL for russians and government debt will become unsustainable.
If the war ends, regardless how well it ends for russia, it will have a detrimental effect on russian economy because the demand created by the military industrial complex is suddenly no longer there.
Comments are closed.