Inflation in Russia stabilizes at 7.4% year-on-year in January

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The inflation rate in Russia stabilized at 7.4% on an annual basis in January, according to the federal statistics agency Rosstat reported on Wednesday, remaining higher than the 4% level.

In December 2023, inflation slowed to 7.4%, after seven months of continuous rise, according to Rosstat.

High prices remain one of the main concerns of the Russian people, whose purchasing power is affected by Western sanctions and the decline in the value of the ruble against the US dollar and the Euro.

On Monday, Russian President Vladimir Putin asked the government to pay special attention to controlling inflation, a month before the presidential elections that are supposed to see him re-elected until at least 2030.

For several months, the Russian Central Bank focused its attention on rising prices, in light of an economy exhausted by the continuous increase in military spending as a result of the war in Ukraine.

In mid-December, the Russian Central Bank raised the main interest rate to 16% in a decision that is the fifth of its kind since July 2023, in an effort to limit the noticeable rise in prices since last spring.

For 2024, the Russian government has announced its intention to contain overheating in an economy that is now largely oriented toward the production of weapons and ammunition.

“It’s very important to maintain a balance between development goals, increase investments and loans, preserve job opportunities and ensure price stability,” Putin noted.

The Russian authorities expect economic activity to slow in 2024, relying on slight growth, after witnessing a significant recovery last year.

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