Potato Shortage: Putin’s War Economy Starts to Crack
Russia’s beloved potato has become a symbol of deeper economic trouble, as food prices surge and inflation bites into Vladimir Putin’s war-weary economy, The Gaze reports, citing The Telegraph.
The cost of potatoes has jumped 167% in the past year — the steepest rise of any food — prompting Putin to admit: “It turns out that we don’t have enough potatoes.”
The shortage, caused by poor harvests and increased demand, underscores how stretched the Russian economy has become under the weight of war and sanctions.
Food inflation, labour shortages, and a war-driven budget deficit are now combining to expose vulnerabilities long hidden by high military spending and robust energy exports.
Despite record-low unemployment and rising nominal wages, real pressure is mounting. The interest rate remains at 20%, and inflation stood at 9.9% in May.
Economists warn that the war economy has hit its limits: there are no more workers to pull into arms factories, and government finances are stretched.
Still, the pain is unevenly felt. A new war-driven middle class has emerged in Russia’s smaller towns, where enlisting in the military has become a “social lift.”
Government enlistment bonuses of $20,000–$35,000 and above-average monthly wages have allowed some families to buy new homes or cars.
Yet for many, everyday goods are becoming harder to afford. Potatoes — seen as a Giffen good that poor households consume more of when incomes fall — have become a rough barometer of hardship. Others like butter, meat, and eggs are also soaring in price.
As sanctions tighten and the war drags on, Putin has limited options to stimulate the economy without stoking inflation.
Putin remains shielded politically by public resilience — and by the return of Donald Trump to the White House, whose administration recently paused weapons shipments to Kyiv. But that doesn’t mean the strain is going unnoticed.
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