Russia's Inflation Concerns

In Russia, the inflation rate has remained high, with a recent slight decline. Inflation continues to be a significant issue for the Russian economy, despite some projections of a slowdown; rising prices for food and other products have a particular impact on the population. Details on inflation in Russia: Current rate: Year-on-year inflation in Russia was 9.4% in June 2025, slightly lower than the previous month, when it reached 9.9%, according to Rate Inflation. Consequences for citizens: The population's purchasing power is being negatively affected by inflation, as the prices of basic goods and food have increased significantly. The Central Bank of Russia has warned of the danger of continued inflation despite the lack of economic growth. Elements: Inflation is being driven, among other things, by rising wages, a shortage of workers, and sanctions imposed by the West. Projections: According to Reuters, the Central Bank anticipates inflation falling to between 7% and 8% in 2025; however, this figure is still higher than the target of 4% for 2026. Military Expenditures: According to Le Grand Continent, the pressure on Russia's economy is also due to rising military spending. Missing: The budget deficit is another concern, especially if revenues from gas and oil fail to cover it.