Vladimir Putin, the president of Russia, warned the government and central bank to maintain control of the situation after noting that inflationary risks in the economy of the nation were growing. Living standards will decline as a result of rising costs, something Vladimir Putin continues to worry about much as he gets ready to start what is likely to be a campaign to retain his position as prime for another six years in March.
Russia’s budget is under pressure due to the conflict in Ukraine, and the central bank had to raise interest rates last week to stop the rouble’s decline.
“The scale and complexity of the tasks we are solving, and continue to solve, are of a really exceptional nature.” In addition, he added that while things were mostly steady, quick action and diligent observation were still needed.
Inflation in Russia reached double digits in 2022, although the rate of price increases slowed down in the spring. The rate of inflation has now risen gradually and is once again above the central bank’s 4% objective. The severe labour shortage and growing budget deficit in Russia have led to the rising inflationary pressure in 2023.
Vladimir Putin said, “The government and central bank need to actively use the instruments available to them. Work is needed, among other things, on limiting unproductive, speculative demand, controlling the outflow of capital, monitoring the behaviour of the main participants of the financial market.”
“For the year as a whole, the excess of expenditure over income will be at the planned level – around 2% of GDP,” he averred.
