Russia’s Year-High Inflation: War Costs and Sanctions Squeeze Citizens
Russia’s inflation has surged to a near-year high of 9.7%, exceeding 2022’s rate, primarily due to war spending and soaring food prices. In response, the Central Bank drastically increased its key interest rate to 21%, the highest since the 2000s, a move criticized by some as potentially crippling businesses. This aggressive measure aims to combat inflation fueled by substantial increases in essential goods like potatoes and onions. The Central Bank will review the interest rate at its next meeting, weighing inflation control against economic stability.
John Q. Hosedrinker