Skip to content
Subscriber Only

Price Wars and Ruble Hoarders Raise Deflation Fears in Russia

  • Russians increasingly look for savings, driving prices lower
  • Two-year economic contraction has led to a collapse in demand
Updated on

It’s a case of not keeping up with the Ivanovs.

Russia’s longest recession in two decades has obliterated consumer demand. Price growth has slowed for a seventh month, enough for Bank of America Corp. to warn that the country faces a “sharply rising” risk of deflation. Sberbank CIB’s latest survey of the “the Ivanovs,” using a common last name to describe the typical shopper, found a record 76 percent of respondents describing themselves as price-sensitive and 60 percent trying to save on staples by using promotional offers.