A couple of comments: In Russia, you can buy consumer goods for as little or as much as you want. For rediculously high prices, go to the center of Moscow and shop at the malls there. For reasonable prices, stay away from the center. For bargains, go to the markets.

Not all food products are cheaper here - my Russian friends and I have found many food items that can be purchased as cheaply or cheaper in the US. (Vodka is a notable exeption here.)

Most electronic items are sold at about the same price as in the States, but typically a bit more expensive if you buy them in a store. However, in the markets, you can by them for cheaper than in the U.S.

CDs, DVDs, etc: Rarely have I seen stuff here that isn't pirated, so yes, this stuff is cheaper.

Internet: unlimited access can be purchased for $35 a month in some districts.

Wages in Moscow: my wife's parents both are engineers with 20+ years experience. They rake in less than $500 a month each. My wife works in business (though here degree was in teaching), she has a couple years experience and has a salary of over $1000 a month.

St. Petersburg and Moscow have drastically different living conditions than most of the rest of the country. I know this from experience - I spent some time in a small Russian village, though only a couple hours from Moscow. There was no running water, the heater was fueled with wood, and I had to cross a goat pen to get to the outhouse (on the flip side, at least there was electricity). In the villages, very low living conditions are normal. It's definitely a different world out there.