Persisting High Inflation Hits Russian Consumers Hard

Despite Central Bank's Efforts, Food Prices Soar Amid Record Defense Spending

Russia's Central Bank has raised its key lending rate four times this year to control inflation and stabilize the ruble's exchange rate amid the country's military operation in Ukraine and the Western sanctions.
The bank's last rate hike brought it to 15%, double the rate at the beginning of the year, in response to prices increasing at an annualized pace of about 12%.
Despite these efforts, Russian consumers are feeling the pinch, with some reporting price increases of up to 25% for staple food items.
Figures from the state statistical service Rosstat show a significant spike in food prices compared to 2022, with increases of 74% for cabbage, 72% for oranges, and 47% for cucumbers.
The Russian parliament's approval of a 2024-2026 budget with a record amount for defense spending suggests that prices will continue to rise sharply, according to economy analyst Maxim Blant.