Food Prices Rise in Russia After Import Embargo

Food prices are rising in parts of Russia and experts say the state embargo on imports of Western food appears to be making things worse.

Since the ban was imposed on 7 August imported pork used in processed meat in Moscow has gone up by 6%, Russian business daily Kommersant reports.

In St Petersburg food prices have risen 10%. That inflation occurred even before the impact of sanctions.

Russia’s ban on many Western foods is retaliation for sanctions over Ukraine.

The St Petersburg government’s economic policy chief, Anatoly Kotov, said the pork price had risen by 23.5% and chicken by 25.8%.

On Monday, Russia’s Prime Minister Dmitry Medvedev said he did not expect the ban on food imports to lead to price rises or shortages in the shops. But he also said he hoped the ban – introduced for a year – would not last too long.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza