Inflation Rising Due to War

Inflation in Russia is sharply increasing due to the pressures from war, with the current inflation rate reaching approximately 10%. Prices of essential items like meat, butter, and onions have soared by 25% over the past year.

War-oriented Economy Creates Challenges

The war-oriented economy has created significant challenges as demand shifts toward non-productive spending, and wages increase in sectors like defense to attract labor not mobilized.

High Interest Rates and Social Crisis

The Central Bank of Russia raised interest rates to a record 21%, yet this is still considered insufficient to curb inflation. The crisis is not only reflected in rising prices but also highlights social inequalities.

Uncertain Future if War Continues

The future of Russia’s economy could become more precarious if international sanctions persist and consumption decreases. Many economists fear the impacts when the war ends and economic reversion takes place.