Russia’s Minister of Agriculture explained the reasons for the butter shortage by saying that Russians’ incomes had increased.
Prices for butter in Russia have broken a 17-year record due to increased demand for this product, as citizens’ incomes have increased. This was stated by the Minister of Agriculture of the Russian Federation, Oksana Lut, RosSMI reported on Wednesday, November 6.
“Regarding butter, the situation is absolutely clear – against the backdrop of rising household incomes, demand has increased significantly this year, and although our butter production is stable, a certain temporary imbalance is generated in the market,” he said.
According to Rosstat, by the end of October, the annual increase in prices for butter reached 25.7%, while in October alone it became more expensive by 6.58%, which is the strongest jump since October 2007.
However, at the end of October, several large factories where oil was produced were partially or completely suspended in Russia. Businesses experienced difficulties servicing imported equipment and shortages of raw materials.
In addition, oil producers face a shortage of personnel due to the mobilization and outflow of the population due to the war in Ukraine, the consequences of raising rates by the Central Bank of the Russian Federation and increasing prices for imported fats.
We remind you that in Russia a constant high increase in prices has been recorded. The main inflationary factors are staff shortages, budget injections, rapid credit growth and so on.
The Central Bank of the Russian Federation raised the main interest rate by 200 basis points simultaneously – to 21% per annum, which is the highest figure since February 2003.
Source: korrespondent
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