Inflation tops Russians' worries as prices soar 31.7%
According to a survey by the Levada Center, inflation is the primary concern for Russians, surpassing even the armed conflict. The survey reveals that 63% of respondents view rising prices as the most significant issue, while war and sanctions come in second at 35%, reports the Moscow Times.
The findings, calculated by the Levada Center—a non-governmental organization designated by the Kremlin as a foreign agent—show that 63% of families spend at least half of their income on food. Additional studies suggest that 6-9% of Russians lack adequate resources for essential food needs.
Data from Rosstat indicate that prices rose by a total of 31.7% from 2022 to 2024, with inflation alone reaching 9.5% in 2024. Food products, in particular, became significantly more expensive, straining household budgets.
Russians also face other economic challenges. Housing issues rank third among their concerns, as noted by 30% of respondents. Fears of an economic crisis have grown, increasing from 9% in March 2024 to 16% at present.
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, acknowledged that inflation remains a serious "challenge" for the nation's economy. "We must do everything necessary to ensure sustainable growth," stated Putin.
Mikhail Mishustin added that Russia's economy grew by 4.1% in 2024, mirroring the growth rate of 2023. The Prime Minister concurred with Putin, noting that "it is absolutely 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 identified Western sanctions, ruble depreciation, and poor harvests as primary contributors to inflation. Additionally, it noted that defense spending is driving demand, which continues to outpace the economy's capacity to supply goods and services.
The Central Bank of Russia forecasts that inflation will decrease to between 5.2% and 8.6% by the end of 2025. The central bank plans to convene another interest rate meeting on February 14.
