Central Bank: Russians spend large portion of income on food

The share of food and beverages (including alcohol) in the consumer basket of Russians is one of the highest in the world, said the Central Bank. That share is 37.7 percent in Russia, versus 23.1 percent in Brazil, 21.6 percent in South Africa, 19.1 percent in Japan, 5.3 percent in the U.S. and 13.5 percent in Germany. In India, the share is 49.7 percent.

The Central Bank also identified rising food prices as one of the major sources of inflationary risk for the Russian economy (inflation hit 6.6 percent in 2012). Currently the fate of future harvests in Russia and internationally remains highly uncertain, but there are no identifiable factors that would lead to price increases in the near future, the Central Bank reported.

Meanwhile, global food prices have been dropping since October, reported Bloomberg. While prices will remain high in 2013-14, the situation will be more stable than last year, according to the UN.

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