The shelves at Moscow supermarkets are full of fruit and vegetables, cheese and meat. But many of the shoppers look at the selection with dismay as inflation makes their wallets feel empty.
Russia’s Central Bank has raised its key lending rate four times this year to try to get inflation under control and stabilize the ruble’s exchange rate as the economy weathers the effects of Russia’s military operation in Ukraine and the Western sanctions imposed as a consequence.
The last time it raised the rate — to 15%, doubled that from the beginning of the year — the bank said it was concerned about prices that were increasing at an annualized pace of about 12%.
Figures from the state statistical service Rosstat released on Nov. 1 show a huge spike in prices for some foods compared with 2022 — 74% for cabbage, 72% for oranges and 47% for cucumbers.
The Russian parliament has approved a 2024-2026 budget that earmarks a record amount for defense spending.
Maxim Blant, a Russian economy analyst based in Latvia, sees that as an indication that prices will continue to rise sharply.
“It is simply impossible to solve the issue of inflation in conditions … when the military-industrial complex receives unlimited funding, when everything they ask for is given to them, when the share of this military-industrial complex in the economy grows at a very rapid pace,” he told The Associated Press.
The original article contains 429 words, the summary contains 204 words. Saved 52%. I’m a bot and I’m open source!
This is the best summary I could come up with:
Russia’s Central Bank has raised its key lending rate four times this year to try to get inflation under control and stabilize the ruble’s exchange rate as the economy weathers the effects of Russia’s military operation in Ukraine and the Western sanctions imposed as a consequence.
The last time it raised the rate — to 15%, doubled that from the beginning of the year — the bank said it was concerned about prices that were increasing at an annualized pace of about 12%.
Figures from the state statistical service Rosstat released on Nov. 1 show a huge spike in prices for some foods compared with 2022 — 74% for cabbage, 72% for oranges and 47% for cucumbers.
The Russian parliament has approved a 2024-2026 budget that earmarks a record amount for defense spending.
Maxim Blant, a Russian economy analyst based in Latvia, sees that as an indication that prices will continue to rise sharply.
“It is simply impossible to solve the issue of inflation in conditions … when the military-industrial complex receives unlimited funding, when everything they ask for is given to them, when the share of this military-industrial complex in the economy grows at a very rapid pace,” he told The Associated Press.
The original article contains 429 words, the summary contains 204 words. Saved 52%. I’m a bot and I’m open source!