Rosstat named the most expensive product by 2024

According to the service analyzed by RBC, the average price of 1 kg of potatoes in December was 56.9 rubles, compared to 28 rubles the previous year. The price of butter also increased significantly: the average price per kilogram reached almost 1.2 thousand rubles, which is 36.2% higher than the level in December 2023.

Other products that have become more expensive are onions, whose price increased by 48.2%, and white cabbage (+44.7%). National salmon caviar rose in price by 37.7%, beets by 32.1% and cucumbers by 28.5%.

The president of the Potato Union, Tatyana Gubina, in conversation with RBC explained the increase in prices by saying that in 2023 they would be low due to a record harvest. In addition, the cost was affected by the reduction in cultivated area and unfavorable weather conditions, Gubina listed.

The chief economist of PF Capital, Evgeny Nadorshin, in conversation with RB.RU agreed that the main reason for the increase in food prices is a poor harvest. However, he noted that “the growth of market power among the main players” in the agricultural industry also played a certain role.

According to Nadorshin, despite the poor harvest, the profits of agricultural companies increased in the first 10 months of 2024. In addition, there is an increase in exports of meat and meat products from Russia. This indicates the presence of excess production capacity among manufacturers who, instead of maintaining prices in the domestic market, sent their products for export, which generated additional profits for them. “In my opinion, this is not a very good sign,” the economist said.

Among food products, according to Rosstat, only chicken eggs (-11.2%) and buckwheat (-6.4%) have noticeably decreased in price. Prices also fell in the home goods and electronics sector: tablets fell in price by 4.1%, smartphones and wireless headphones by 3.7%, smart watches by 3.2% and vacuum cleaners ground electrics by 2.3%.

Nadorshin explained the non-increase in electronics prices due to high competition among Chinese manufacturers, who face a lack of domestic demand and actively supply equipment to Russia. According to the economist, Chinese companies “assume” the higher costs associated with sanctions and the weakening of the ruble, but continue to offer competitive prices, trying to retain all buyers. “There are difficult circumstances for both Chinese and Russian suppliers. But that’s how differently the situation is developing,” the expert concluded.