Fewer shoppers in stores but more guests in hotels—how demand has shifted prices in the last month of spring.

Inflation is slowing in Kuban. This doesn’t mean food and consumer goods have become cheaper; they’ve either risen less noticeably or dropped by a small percentage. The overall inflation rate for all goods and services in May was 0.5%. Annual inflation stands at 10.7%—still higher than the national average (9.9%) but lower than the regional April figure (11.2%). The main reason is that residents are no longer shopping as actively as they were a few months ago. Reduced demand is forcing sellers to lower prices.

Other factors cited include increased production of certain foods and a stronger ruble. While May’s figures show improvement compared to April, year-over-year data reveals that high inflation still affects the region’s economy.

Daily Expenses

Food prices rose by just 0.3% from April to May but increased by 15% year-over-year. Butter and fats dropped by 0.7% monthly but surged by 25% annually. Over the past 12 months, produce (including potatoes) saw the steepest price hike—27%. However, in monthly terms, it finally decreased for the first time in a long while (by 2.2%).

Certain vegetables became more affordable in May. Cucumbers dropped by 36%, and tomatoes by 28%, thanks to increased supply.

Warm May weather reduced producers’ costs for heating and lighting greenhouses. Additionally, harvest volumes for these vegetables grew.

Despite this, tomato and cucumber prices rose by 2.73% and 8.42% over the past year due to significant spikes in some autumn and winter months.

Price increases for specific produce items included: white cabbage (22.3%), carrots (21.8%), beets (14.1%), lemons (11.3%), apples (6.2%), potatoes (6%), onions (5.9%), grapes (5.3%), frozen berries (2.8%), oranges (2.6%), nuts and pears (2.4%). Meanwhile, prices dropped for bell peppers (-8.6%), bananas (-5.4%), mushrooms (-5.4%), garlic (-4.2%), and greens (-2.4%).

Potatoes saw the most dramatic price surge in May due to last year’s poor harvest. Nationwide, including in Krasnodar Krai, wholesale prices rose by 46-51 rubles since the start of the year—nearly 85% higher than in 2024. As a result, retail prices exceeded 100 rubles per kilogram, with Novorossiysk recording the highest prices.

Potato harvesting began in June in southern regions, including Krasnodar Krai. Prices may drop as new stock arrives, but the extent depends on this year’s yield.

Eggs saw the sharpest price drop—down 8%—marking the fifth consecutive month of decline due to rising national production. However, local egg production in Kuban has fallen by 12% this year.

Meat and poultry prices rose sharply by 2.5% in May, including more affordable pork. Producers faced higher costs for veterinary supplies and labor.

Dining Out

Eating out became more expensive in May, with prices up 1.3% monthly and 12.6% annually—though the pace has slowed slightly. The peak inflation in this sector was in March (14.1%), with slight easing since April. Rising costs for ingredients and wages drove the increases. The food service industry has grown for months, with turnover reaching 146.6 billion rubles last year.

This trend intensified in 2025, with Q1 turnover up 13.4% to 36 billion rubles. Higher demand allowed restaurants to pass rising costs to customers, increasing the average bill. In April-May, the average café or restaurant bill was 1,342 rubles—11% higher than last year. Fast-food outlets saw the highest visitor growth, with shawarma particularly popular due to rising road tourism.

Second Thoughts

Non-food goods prices fell by nearly 0.4% in May.

TVs, computers, and smartphones have gotten cheaper for four straight months, partly due to cooling demand amid high loan and deposit rates. A stronger ruble