Russia economy meltdown as onion prices skyrocket and potatoes 166% more expensive

Borscht (inset) and empty shelves in Moscow (Image: GETTY)

The cost of staple vegetables used in borscht - a traditional soup common in Russia - has soared over the past year, placing further pressure on household budgets already strained by broader inflation and stagnant wages. According to the latest figures released in May 2025 by Rosstat, Russia’s state statistics agency, the price of potatoes has surged by 166.5% year-on-year. Onions have jumped by 87.2%, while cabbage – another key borscht ingredient – is up 56.8%.

The increases were reported by the Kommersant business daily, citing Rosstat’s April 2025 inflation bulletin. Analysts blame a combination of poor crop yields, rising agricultural input costs, and extreme weather conditions for the dramatic rise. Regions such as Volgograd, long regarded as critical to Russia’s vegetable production, have suffered particularly badly. A combination of drought, inefficient irrigation infrastructure, and persistent water supply issues has devastated yields. Producers have also seen fertiliser prices continue to climb, with costs of crop protection chemicals rising in parallel due to Western sanctions and supply chain bottlenecks.

Vladimir Putin has consistently tried to downplay the impact of Western sanctions (Image: Getty)

Kommersant warned: “Production costs for growers have become unsustainable in some areas”, noting that some farmers have already begun scaling back operations heading into the 2025 planting season.

The price hikes are having a marked effect on Russian household finances. According to market analysts at Romir, the share of income that Russians spent on groceries climbed to 34.6% in April 2025 – the highest level recorded since the invasion of Ukraine in February 2022. That compares with a pre-war level of around 26%, and highlights the growing burden of food inflation.

Rosstat’s broader consumer price index showed annual inflation running at 8.4% in April 2025, up from 7.1% in January. Food prices are rising at a significantly faster pace than the headline rate, driven by fresh produce, dairy, and basic grains.

“This is not just about luxury foods or imported products – basic items like potatoes and onions are becoming unaffordable for millions,” one Moscow-based economist told Kommersant.

The cost of potatoes has soared by 166 percent in the last year (Image: Getty)

The economic strain is compounded by weak wage growth.

Average real disposable incomes in Russia grew just 1.2% over the past year, according to Rosstat data published earlier this month.

That means food inflation is outpacing wage increases by a wide margin, eroding purchasing power across the country.

With fresh vegetables forming the base of many traditional Russian dishes, including the iconic beetroot-based borscht, the crisis is hitting home culturally as well as economically.

Borscht is an extremely popular meal in Russia (Image: Getty)

Local authorities in some regions have begun exploring targeted subsidies for low-income families, while federal officials are reportedly considering import tariff adjustments to ease pressure on domestic prices – though such moves remain politically sensitive amid ongoing sanctions and the Kremlin’s emphasis on food sovereignty.

For now, consumers are left to foot the bill. One pensioner in Nizhny Novgorod told Kommersant: “We used to make borscht twice a week. Now it’s a luxury.

"I’ve switched to soups without potatoes – even cabbage is too expensive.”