Vladimir Region: Food Prices Rose by 9%, Electronics – Up to 30%, but Services Have Not Risen at All in March

The rise in prices was spurred by the dollar exchange rate and a rush in demand

According to Vladimirstat, in March 2022, food prices rose by 8.9%, non-food prices – by 12.7%, and services – only 1.6%. Since the beginning of the year, consumer prices have risen by 12.5%, while in the first three months of 2021, the increase was 2%. This data is contained in the monthly statistical report of the organization.

As previously reported ProVladimir, the most common basic products, which are the basis of the diet of the poor, have gone up in price most significantly among the foodstuffs. The cost of minimum basket in the Vladimir region at the end of March was 5,900 rubles, an increase of 10.7% for the month and 15% YTD. This is the most significant increase since 2000.

Our region ranked 11th in Russia in terms of growth of prices for the minimum basket, leaving the North Caucasus republics behind. Of our geographical neighbors a similar increase in prices for the most essential products is observed in the Nizhny Novgorod region.

The minimum basket of goods includes those products which, according to Vladimirstat, a person can survive on. There is more than half a loaf of bread, 285 grams of potatoes, one tomato, one carrot and one onion, 3/4 of an apple or a banana, half an egg, 160 grams of meat and 50 grams of fish, 65 grams of sugar.

The sharp rise in price of the minimum set of products is partly explained by the rush in demand, formed at the beginning of March. As a result, in March, the price of sugar rose by 52.1%, the price of cabbage, carrots and rice went up by about 20%, buckwheat – by 17.5% and salt – by 14%.

In addition to the minimum basket, Vladimirstat also monitors the prices of a fixed set – a list of products, goods and services, the consumption of which is aimed at maintaining a minimum comfortable lifestyle. At the end of March, the cost of such a set for the Vladimir region amounted to 19,773 rubles per family member.

The increase in prices for the fixed set was much smaller than for the minimum set, amounting to 6.6% in March and 9.2% since the beginning of the year.

Among non-food products, the largest increase in prices was shown for electronics and home appliances – 27.3% for the month and 33% YTD. The price of household chemicals and medicines went up by 25% and 14.2%, respectively. Construction materials continued to rise in price, having added another 18% since the beginning of the year. The price of cars went up by 25% in March and by 31% from the beginning of the year (there is a very wide dispersion depending on the brand of the vehicle).

According to national data from Sberindex, demand for home appliances doubled in early March, demand for medicine increased by 62%, and demand for furniture went up by 79%. By mid-March, there was a rush in demand for computers and software, but it may be related to the government and business sectors. By May 8, demand for furniture and appliances had stopped and is now at a record low for the past two years.

Overall service sector inflation was 1.6%. This is because when people “tighten their belts,” the first thing they do is reduce spending on services. Thus, in March 2022 in the Vladimir region cafes and hotels were in demand by 24% less than a year earlier. And the revenue of public catering, compared with last year, this month fell by 26%. By the beginning of May there was a recovery of demand in the hotel business, Muscovites eagerly booked Suzdal hotels for the long weekend in May.

In the sphere of services two directions – foreign tourism (by 37% in March and by 53% from the beginning of the year), and banking services (by 36% in March and by 57% from the beginning of the year) increased significantly. The latter may be due to the introduction of a wide leverage on foreign exchange transactions.
The cost of the overwhelming majority of services – domestic, housing and utilities, communications, education, culture, health care, sanatorium, veterinary, legal and insurance – either did not change, or even showed a slight decline.

Original publication

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