By the end of 2023, consumer sentiment had slightly deteriorated. Hopes for the future remain at a high level, but indicators of the current situation – financial condition and readiness for large purchases – turned out to be lower than in October. Concern about consumer prices has grown: Russians are more likely to note their high growth rates and expect further increases. Satisfaction with the general standard of living has also decreased.

In December, the consumer sentiment index recorded multidirectional trends: the index of estimates of the future continued to grow, setting a new maximum for the observation period since 2009, however, the index of the current financial situation decreased, returning to summer indicators. Since these changes were recorded only in the course of one survey conducted in December, it is premature to indicate a change in the trend. Nevertheless, increased inflation and rising food prices may have a lasting impact on the mood of Russians.

It should be noted that the decline in estimates of the current financial situation occurred in all age groups. At the same time, in the youth group (18-24 years old) confidence in the future has also significantly decreased. The decline in expectations occurred in a group of those who disapprove of the state of affairs in the country.

Rising prices are one of the most important factors in the deterioration of economic and consumer sentiment. By the end of 2023, the number of respondents expecting prices to rise in the coming months has increased. In August, compared with March, it rose 8% (increased from 21% to 29%). In December, the survey recorded another increase to 34%.

They will grow faster; They will grow at the same speed; They will grow slower; They won’t grow

According to respondents in December, the rate of price growth has increased significantly over the past twelve months: 26% of Russians noted a price increase of between 30% and 50%. This is 7 percentage points more than in the August survey. At the same time, the majority of Russians (59%) believe that prices have increased at a rate of up to 30% per year over the past 12 months.

The share of respondents forced to give up food and basic necessities increased slightly by the end of the year, although the changes remained within the statistical margin of error. Older Russians, as well as people with limited means, are most often forced to save money. Among the respondents who “can only afford food,” 66% are forced to give up some of the necessary food, 73% – from clothes and shoes, 81% – from large purchases for the home.

I HAD TO GIVE UP… (as %% of all respondents)

In December, for the first time in the last two years, there was a decrease in the proportion of respondents who are more satisfied with the life they lead: from 55% to 44%. At the same time, the number of Russians who are only partially satisfied with their lives has increased from 29% to 36%. The share of respondents dissatisfied with their own lives increased slightly (by 3 percentage points).

The opinion that life is rather unsatisfactory is more typical for respondents with low consumer status. In the period from April to December, their share increased from 32% to 42%. The more affluent consumer groups “drifted” towards a middle of the field position (“partly satisfied, partly not”). Their opinion shifted about 10 percentage points. The essence of the changes indicates that negative changes are most acutely perceived among the most financially vulnerable Russians. More affluent groups feel less change in their lives.

SPEAKING GENERALLY, TO WHAT EXTENT ARE YOU SATISFIED WITH THE LIFE YOU LEAD NOW? (in %, by consumer group)