Russia's tractor output plummets as inflation fears surge

Official Rosstat data show Russian tractor production collapsed by 40.5% in the first five months of 2026, with only 2,004 units built compared with the same period a year earlier. May 2026 saw just 367 tractors leaving factories, a 28.3% drop year‑on‑year. Industry analysts cite a severe labour shortage as workers shift to the defence sector, outdated equipment operating at about 62% of capacity, and sanctions that block access to modern technology and financing.

At the same time, a poll by the Opinia Publiczna foundation found that 49% of Russians expect faster price increases for basic goods over the next month, up from 35% a month earlier. Fuel prices have surged, with gasoline up 7.9% and diesel 9.5% since early June, fueling concerns that higher logistics costs will push overall inflation higher throughout the summer.