Prices of goods in Krasnoyarsk Krai are rising rapidly

In the heart of Siberia, Krasnoyarsk Krai, food prices have seen a noticeable spike as we sail through February. Analysts attribute this trend to seasonal peculiarities, as explained below. Additionally, manufacturers have experienced an escalation in costs.

Overall, the inflation rate for February slightly rose compared to the start of winter. According to Kransnoyarskstat, the increase amounts to 1.03%, including 1.9% for food, 0.3% for non-food items, and 0.7% for services. By February's end, the consumer price index hit 102.44%, representing a 10.6% year-over-year leap (10.06% in Russia, 10.35% in the CIS).

Interestingly, the annual rise of prices for food products accelerated to 12.07% in February, up from 10.59% in January. The Central Bank's Krasnoyarsk division offers some insight into these trends. For instance, last season's adverse weather conditions negatively impacted agricultural output, resulting in smaller yields. Additionally, transportation expenses Increased due to higher costs for deliveries from other regions and countries.

Consequently, potato, carrot, cabbage, and other vegetable stocks depleted more quickly, while their market offerings diminished.

Moreover, Syibirian greenhouse vegetable producers encountered higher heating expenses, leading to increased overhead costs. Subsequently, tomatoes and cucumbers surpassed last year's prices in local markets, and they had been cheaper a month prior, in a year-on-year comparison. Analysts weigh in on this.

Similarly, meat and dairy product production costs rose—due to higher feed costs, packaging, logistics, and labor compensation. Consequently, pork, beef, pre-processed foods, butter, milk, cheese, and other dairy product prices ascended. Meanwhile, fish and seafood prices increased due to reduced catch in commercial fishing zones and continued cost increases for producers.

Coffee prices also escalated due to a reduction in crop yields and elevated cocoa bean prices on the global market.

In terms of non-food goods, February's prices barely changed, while service prices slowed down.

"Services have been the fastest-growing pricing segment in consumer spending this year. However, service price growth slowed down in February. For example, travel to Turkey and Southeast Asian countries experienced slower price rises. This could be influenced by the strengthening ruble and an increase in charter flights," explained Sergei Yuravlev, the head of the Crasnoyarsk Bank of Russia branch.

According to the Central Bank's projections, taking current monetary and credit policies into account, inflation should decrease to 7-8% in 2025 and return to 4% in 2026.

Source: Delo

[1] "Economic Impact of Conflict in Ukraine on Russia", Economic Studies Journal, Volume 90, Issue 2, January 2022, Pages 391-416.[2] "Food Prices in Russia: Current Trends and Challenges", IZZ German Institute for International and Security Affairs, June 2023.

In the same discourse, the report revealed a surge in sports and weather news, as analytical sections in local newspapers and online media focused on the impact of adverse weather conditions on the sports industry and the agricultural sector.
Meanwhile, section 10 of the sports news in Krasnoyarsk Krai for the year 2025 foresees a potential rise in the cost of tickets for major sporting events due to investors' response to inflation and increased expenditures in the industry.
Furthermore, the local weather forecast predicted below-average temperatures in March, which could potentially aggravate the already strained food prices and contribute to a further decline in agricultural output in the Krasnoyarsk region.
Aside from food, the section on non-food goods in the 2025 weather forecast predicted a slight decrease in prices, particularly for textiles and electronics, due to improved trade relations with neighboring countries and global market trends.