The Russians were buying electronics or medicine as the crisis worsened

In the first week of March, the Russians started buying more electronics and medicine, and they also spent more on clothes and shoes. And so they stockpiled goods at a time when the ruble was falling sharply and Western sanctions were restricting trade. This came on the heels of a report published by the state Promsvyazbank (PSB).

Commodity prices have risen sharply since Moscow launched its invasion of Ukraine on February 24. The invasion triggered sanctions that isolated Russia economically and pushed the Russian ruble to a record low. Many of the world’s leading companies have halted their operations in the country, and the country has been largely excluded from the international financial system.

The average Russian spent 21 percent more in the first week of March than the average in February. This was due to inflation on the one hand, but also due to rapid efforts to build inventories on the other hand, PSB said after analyzing credit and debit card transactions.

PSB offers a wide range of services. Since 2017, when the central bank bailed him out, he has focused on civil servants and the defense sector.

Spending on electronic goods increased by 40 percent. Pharmacy sales increased by 22 percent. PSB said demand for clothes and shoes and spending in supermarkets increased by 16 per cent. Adjusted for inflation, demand for these types of goods increased by 14 to 21 percent. On the other hand, Russians cut their spending on cafes and restaurants by six percent.

In a stressful environment, customers want to “fix prices and buy not only trendy but also ordinary goods,” PSB analyst Dmitriy Grykevich added. Demand is expected to subside in the coming weeks as supply chains from China and India resume.

According to the Ministry of Economy, the annual inflation rate was 10.42% on March 4. It rose from 9.05 percent, where it was on February 25. Weekly inflation rose to 2.22 percent from 0.45 percent the previous week, the highest level since 1998, Reuters reported.