Putin demands to curb inflation, but prices keep climbing

The Russian President is urging the government and the Central Bank to slow down inflation, which has reached 9.9% annually. However, experts point out that it is the record military spending that has driven up prices, reports NewsBox

At a meeting with Prime Minister Mikhail Mishustin, Vladimir Putin once again called upon the authorities to get inflation under control, noting its rapidly increasing rate. In 2024, the inflation rate was 9.5%, and as of February 3, 2025, it has risen to 9.9%, which, according to the head of state, is becoming a serious challenge.

The Bank of Russia has already raised the key interest rate to 21% to contain prices, yet there are no signs of stabilization. Central Bank economists emphasize the need for comprehensive measures, including a strict monetary policy and adherence to budgetary constraints.

Mishustin echoed the necessity of maintaining a balanced approach.

"Our primary task... is to transition to a highly responsible fiscal and macroeconomic policy," he stated.

However, economists point out that the rapid inflation is linked to record military expenditures, which make up a fifth of the country's budget and continue to rise.