Rising inflation: Russians prioritize economic survival
According to a survey by the Levada Center organization, inflation is the primary concern for Russians, even more so than the armed conflict. As many as 63% of respondents identified rising prices as the biggest problem, whereas war and sanctions concern 35%, the Moscow Times reports.
The survey, conducted by the Levada Center, a non-governmental organization classified by the Kremlin as a foreign agent, shows that 63% of families allocate at least half of their income to food. Other studies suggest that 6-9% of Russians lack sufficient resources even for buying food.
According to data from Rosstat, prices increased by a total of 31.7% in the years 2022-2024, and inflation alone in 2024 was 9.5%. Food products, in particular, became significantly more expensive, heavily straining household budgets.
Russians are also experiencing other economic difficulties. Housing issues ranked third among concerns, indicated by 30% of respondents. Anxiety about an economic crisis rose from 9% in March 2024 to 16% currently.
Authorities admit: there is a problem
The Moscow Times also reported that Russian President Vladimir Putin, in a public discussion with Prime Minister Mikhail Mishustin, admitted that inflation remains a serious "challenge" for his country's economy. We must do everything necessary to ensure sustainable growth," Putin stated.
Mikhail Mishustin added that Russia's economy grew by 4.1% in 2024, matching the growth rate of 2023. The Prime Minister concurred with Putin, stating that "it is clear that the main challenge is inflation."
The Central Bank of Russia announced earlier this week that it sees "no signs of a sustained slowdown in price growth," despite maintaining a record high interest rate of 21%.
The regulator cited Western sanctions, the depreciation of the Ruble, and poor harvests as the main contributors to inflation. Additionally, the bank noted that defense spending drives demand, which continues to outstrip the economy's capacity to supply goods and services.
The Central Bank of Russia forecasts that inflation will drop to between 5.2% and 8.6% by the end of 2025. The central bank plans to hold another interest rate meeting on February 14.
