Many Russians struggle to make ends meet due to rising inflation

Global Business

Sanctions, food import bans and a declining rouble are all contributing to rising inflation in Russia. Food prices have been the hardest hit with the government calling for prosecutors to monitor rises in costs to combat who it calls speculators. CCTV’s Tom Barton reported this story from Moscow.

“I am a pensioner and my pension is 6,600 roubles ($103.05). I used to work as a cook at a kindergarten,” a pensioner and meat seller named Natalia, who did not give her last name, said. “Now I produce my own stuff. And it’s very difficult, I don’t know how much longer I will be able to do this.”

Many Russians struggle to make ends meet due to rising inflation

Sanctions, food import bans and a declining rouble are all contributing to rising inflation in Russia. Food prices have been the hardest hit with the government calling for prosecutors to monitor rises in costs to combat who it calls speculators. CCTV’s Tom Barton reported this story from Moscow.

In August 2014, the Kremlin banned many food imports from Europe, the U.S., and other countries in retaliation for western sanctions over the Russian government’s actions in Ukraine.

Between sanctions and the falling oil price, the rouble has lost more than 40 percent of its value against the dollar over the course of the last year.

Some examples of the inflation have included tomatoes and cucumbers, their prices have risen 300 percent since last summer.

“For me it’s quite obvious that in the next two years, we will see the main macroeconomic indicators falling from one side and very high, exceptionally high inflation, which is a burden for low-income parts of the society, poor families — that’s a fact,” Former Russian economy minister Andrey Nechayev said.

Prime Minister Dmitry Medvedev said the government is planning to adjust pensions and social benefits in accordance with official inflation.

The government has also called for prosecutors to monitor the price of food, fuel and medicine, and act if wages or benefits are delayed.