Due to inflation and slowing income growth, consumer demand in Russia is weakening. According to a forecast by Russia’s Ministry of Economic Development, the growth of real disposable household incomes will decline from 7.4% in 2025 to 1% in 2026, reports the Foreign Intelligence Service of Ukraine, according to UNN.
Details
As noted by the intelligence service, during the week of October 12–18, 2026, nominal consumer spending increased by 7.2% compared with the same period last year. In the third quarter, real spending, adjusted for seasonal fluctuations, decreased by 2.2% compared with the previous quarter.
Demand is falling for durable goods and services. During October 12–18, spending on electronics and telecommunications equipment fell by 13.5% year-on-year, furniture by 6.6%, taxis by 6.3%, clothing, footwear, and accessories by 4.1%, and sporting goods by 2.7%. Russians are postponing major purchases and saving on nonessential expenses. The cost of everyday services is also forcing them to save. In August–September 2026, residents of Russia’s central regions visited beauty salons, auto repair shops, and food-service establishments less frequently, opting for cheaper alternatives. In Moscow and the Moscow region, they switched to budget establishments and ready-made food from stores. In the northwest of the country, sales of new cars, household goods, and cosmetics declined
At the same time, most Russians do not feel any improvement in their financial situation. Only 6% of respondents said that their situation had improved over the past two or three months.
Another 25% reported a deterioration, while 68% noticed no changes. The share of the latter has remained at 66–68% for the past several years, indicating prolonged stagnation in the incomes of most of the population
We would like to remind you
The sharp rise in oil prices in September did not bring a corresponding increase in revenues to the Russian budget. The Kremlin is forced to return a significant portion of the taxes collected to oil companies, compensating them for the costs of supporting the domestic fuel market.