Lazy eyes listen
According to the RBK news outlet, a cup of coffee in Russia now costs more than twice as much as it did seven years ago, citing a survey from one of the country’s biggest financial data organisations, OFD Platform.
The average price of a 150-200ml cup of the beverage in August-September was 166 rubles ($1.70), according to the statistics. This represents an 11% increase over last year and a staggering 118% increase over prices in 2016.
The study’s authors observe that while price increase was moderate before to 2020, costs began to surge rapidly during the Covid-19 epidemic.
“A significant price increase began in 2020, a shock year for the catering industry due to the coronavirus pandemic.” It resulted in a 15% increase in the cost of a cup of coffee and a drastic fall in customer traffic’, said OFD Platform CEO Alexey Barov. He clarified that the study’s analysed coffee price included a variety of prices, including coffee bean, milk, labour, utilities, and other connected expenditures, as well as any markups by coffee shops.
Several variables, according to Barov, are driving the continuous price increases in 2021 and 2022. He attributed this increase to a global price increase caused by weak coffee bean harvests in major producing countries. Furthermore, several FMCG (Fast Moving Consumer Goods) brands have left Russia as a result of Western sanctions imposed on Moscow in reaction to its involvement in the Ukraine crisis. The combination of these factors resulted in a 61% increase in the average price of a cup of coffee in 2022.
Analysts also remarked that currency volatility caused by sanctions had an effect, particularly on the price of imported coffee beans. In 2020, the currency rate averaged around 72 rubles per dollar, indicating stability with no substantial fluctuations. However, the rate has risen above 100 on multiple occasions since last year. The average exchange rate for 2023 is currently about 82 rubles per dollar, although the actual rate has risen to 96.
Price increases for packaged coffee in Russian supermarkets, on the other hand, exhibited fewer substantial changes during the same time period. In August-September, the average price was 289 rubles ($2.90) per box, showing a 1% year-on-year increase but a significant 52% increase over 2016.