(VAN) Analysts at EastFruit have observed that fruits and vegetables are contributing to inflation in Russia, despite the government’s efforts to combat it through fiscal policies and an increase in the key interest rate to 21%.
Overall, the prices of all fruit and vegetable categories in Russia have risen, with expectations of setting new records in the winter-spring period.
EastFruit’s weekly price monitoring indicates that the prices for primary fruits and vegetables are at an all-time high, despite fully stocked storage facilities.
Cucumbers have seen the most significant price increase, nearly tripling over the past year. The current wholesale price is 2.8 times higher than the same period last year. Historically, cucumber prices peak in February. Last season, prices in February were 3.3 times higher than in mid-November. There’s a possibility that cucumber prices could reach 500 rubles per kilogram if the current trends continue.
Potatoes have also seen a substantial price increase, with an average rise of 2.5 times over the past year. Over the last month and a half, prices have surged by 60%, indicating a shortage. Prices are expected to continue rising until the New Year, with a potential 50% increase by spring, which translates to a 4.2-fold increase over the year. This situation presents an opportunity for suppliers from Egypt willing to navigate the Russian market.
Mandarins, essential during the autumn-winter season, have doubled in wholesale price over the year. Despite the devaluation of the Turkish lira, a sharp price increase is not anticipated. However, inflation could drive prices up further.
Apples have increased by 40% in price over the year. A high percentage of the local apple harvest is substandard and not suitable for storage, which currently dominates the market and influences prices. With the onset of stable cold weather, these apples will disappear from the market, potentially leading to a sharp price increase. Import restrictions from most developed exporting countries, along with blocked access to affordable apples from Belarus and Kazakhstan, suggest that prices will continue to rise.
Overall, the prices of all fruit and vegetable categories in Russia have risen, with expectations of setting new records in the winter-spring period.
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