Russia's inflation surge: Kremlin withholds critical data
The Russian Statistical Office has yet to release detailed inflation data for September. The Kremlin is withholding statistics as prices in Russia continue to skyrocket. As a result, the central bank raised the main interest rate to 21 percent, the highest level in over 20 years.
As "The Moscow Times notes," Rosstat published the overall inflation rate for September on October 11. However, detailed data have not yet been released, even though two weeks have passed. This information is unavailable on the agency's website or in the Unified Interdepartmental Information and Statistical System (EMISS).
These detailed statistics would show how much the prices of specific goods and services have increased, as in Rosstat's consumer basket. According to the latest data, inflation decreased in September to 8.6 percent from 9 percent in August.
According to Paweł Jeżowski, a stock market investor and analyst of the Russian economy, inflation could be as high as 30 percent, a point he raised in late July during the "Didaskalia" program. Stockholm Institute of Economics economists have also warned that the Kremlin may be falsifying inflation data.
Skyrocketing prices have led the Russian central bank to raise the main interest rate to 21 percent, the highest level in over 20 years. The bank stated in an official communiqué that inflation is rising due to increased demand driven by public spending, credit offers, and worker shortages.
Large military expenditures, payments for soldiers and their families, and defence sector spending mean Russia is shifting its economy to a war footing. This helps neutralize the effects of Western sanctions, but according to the French agency AFP, it also contributes to inflation.
"The economy of death creates a financial bubble"
In recent months, Russian company CEOs have voiced concerns over the rising costs of bank loans, which in turn affect investments and restrict economic growth, particularly in sectors not related to defence.
The daily "Le Monde" recently highlighted that "the economy of death drives economic growth in Russia." The Paris daily suggests that significant spending on the defence industry, soldiers' salaries, and compensation for the families of the fallen creates "a financial bubble that prolongs the war." The influx of money reaching consumers increases demand but overheats the Russian economy, resulting in rising inflation.
