Russia faces severe inflation, with food prices up 25% and rates at a record 21% to combat it.

Russia is grappling with a severe inflation crisis, with prices of butter, meats, and onions up by about 25% from last year, and overall inflation nearing 10%. This is much higher than expected and is fueled by rising wages due to the Kremlin's military spending and the war in Ukraine. To combat inflation, the central bank has raised interest rates to a record 21%, but experts predict pressures may continue. Despite sanctions, Russia is still exporting oil and gas, especially to India and China, which contributes to state revenue growth.

November 18, 2024
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