Russians have been rushing to spend as the ruble has fallen

Rubles have been burning a hole in Russians’ pockets at the fastest rate since sanctions against the country were announced this summer.

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Consumers’ shopping spree prompted a 1.8% jump in retail sales in November, confounding expectations for a far smaller increase, Bloomberg reported.

With the currency falling off a cliff in the last couple of months, folks are spending their money before it’s worth even less.

Think about currency depreciation as a sort of tax, since it reduces your spending power. Before Japan boosted a key consumption tax in April people went shopping and retail sales briefly surged. But it didn’t last, and sales soon fell back to earth.

Russian retail spending also fell after a brief bump during Russia’s last major currency crisis in the summer of 1998, too.

In other words, any burst of Russian consumer spending will likely be temporary.

 

Russians have been rushing to spend as the ruble has fallen