Free Republic

At a farm near Moscow, newly arrived guest workers from India are planting potatoes and cabbages - work closely monitored by central bank analysts as they prepare for board meetings to set interest rates. While in developed economies such as the United States food accounts for about 14% of the basket used to calculate inflation, in Russia it makes up a hefty 40% or so, and surging prices for potatoes and other staples have been a major reason for its tight monetary policy. The central bank trimmed its benchmark rate to 20% on June 6 but even that is around...

Production of vodka in Russia has plummetted by more than 13%, according to the latest data. The dip occurred between January and May as the country also deals with a shortage of potatoes. On May 14, President Vladimir Putin admitted that Russians "don’t have enough potatoes". Figures suggest that, in the first few months of 2025, the price of the crop surged by 52%, while the overall harvest dropped by 12%. In the first five months of 2025, Armenia exported nearly twice as many potatoes to Russia as it did during the first half of 2024, and almost 17 times...