For one week, food sales 10.4%↑, inflation 2.1%↑
Sugar shortage… A trip to neighboring Finland to buy medicine A scene in front of a currency exchange office in Moscow, Russia, the capital of Russia 2022.02.28 © AFP=News1 © News1 Reporter Jeong Yoon-mi
Reporter Jeong Yun-mi = Although Russia managed to overcome the crisis of default on the 17th, it is known that the living difficulties of the common people in Russia are reaching the extreme due to the prolonged war in Ukraine.
The depreciation of the ruble, inflation, and unemployment due to unprecedented sanctions against Russia by Western countries took a direct blow to the working-class economy. President Vladimir Putins promise of being able to withstand Western retaliation has literally become a proclamation.
According to the National Statistical Office of Russia, the domestic inflation rate in the second week of this month was 12.5%, up 2.1% from the previous week, recording the second highest weekly inflation rate in 20 years.
The economic magazine Commersant reported that food prices rose 10.4% for a week from the 26th of last month to the 4th of this month, two days after the outbreak of the war, which was the highest rate of increase since 1998. According to a Twitter user from Samara, the price of a can of tuna has risen from 130 rubles to 160 to 180 rubles. Sugar is known to be in short supply.
Middle Eastern news outlet Al Jazeera reported that the ruble has fallen nearly 20% in the three weeks since the start of the war on the 24th of last month, forcing many retailers to raise prices in response to the rubles weakness.
As a result, global household goods maker Procter & Gamble raised product prices by an average of 40% due to the increase in logistics and self-control costs due to the weakening ruble. The price of feminine hygiene products jumped more than 30%. In response, the authorities have limited the price increase for basic daily necessities such as dairy products and vegetables to a maximum of 5% in order to maintain the basic lives of ordinary people, TAS News reported.
However, in the case of pharmaceuticals, even though they were exempted from sanctions, major shipping companies stopped their flights to Russia, causing disruptions in the supply of drugs, making it inevitable to raise prices.
Drug prices in Saratov, which borders eastern Ukraine, rose by 2.3 to 6.7 percent. A woman living in St. Petersburg said that the front of her pharmacy is crowded with citizens who want to stock up on emergency medicine in advance.
As global multinational companies such as Apple and Ikea join the Western sanctions, the unemployment rate due to the reduction or suspension of domestic business is expected to turn on.
McDonalds employed 62,000 people at 850 branches nationwide, but stopped operations on the 8th. An economist predicted that by the end of 2022, the domestic unemployment rate will rise by 7%, and wage declines will be inevitable.
Elena Rivakova, an economist at the Institute for International Finance, predicted that the Korean economy would contract by 10% this year if such sanctions against Russia continue. Sergei Grishunin, managing director of the National Credit Rating Service, predicted that the number of bankruptcies in Korea will more than double this year compared to the previous year.