The Russian central bank is expected to raise its key interest rate by an additional 2 percentage points to 23% to curb soaring consumer prices, CNBC reported.
Russia's recent consumer price growth has reached 8.9%, increasing the likelihood of further deterioration in the future.
The central bank has been continuously raising interest rates since last year, especially as inflationary pressures have intensified, with food prices soaring, and its 21% benchmark rate is now higher than immediately after the invasion of Ukraine in 2022.
In particular, shopping cart prices are serious, and food prices such as butter, eggs, sunflower oil, and vegetables have soared to double digits.
Analysts say the war in Ukraine has led to labor and supply shortages, leading to higher wages and production costs, and that these costs have eventually been passed on to consumers.
But the Russian government blames the high cost of living on Western sanctions.
Experts say it will be difficult to prevent inflation and the ruble from weakening despite the central bank's response as long as the war continues, raising concerns that the Russian economy could face stagflation.
AI Anchor|Y-GO
Edit Caption | Line
#NowNews
[Copyright holder (c) YTN Unauthorized reproduction, redistribution and use of AI data prohibited]
Russia's recent consumer price growth has reached 8.9%, increasing the likelihood of further deterioration in the future.
The central bank has been continuously raising interest rates since last year, especially as inflationary pressures have intensified, with food prices soaring, and its 21% benchmark rate is now higher than immediately after the invasion of Ukraine in 2022.
In particular, shopping cart prices are serious, and food prices such as butter, eggs, sunflower oil, and vegetables have soared to double digits.
Analysts say the war in Ukraine has led to labor and supply shortages, leading to higher wages and production costs, and that these costs have eventually been passed on to consumers.
But the Russian government blames the high cost of living on Western sanctions.
Experts say it will be difficult to prevent inflation and the ruble from weakening despite the central bank's response as long as the war continues, raising concerns that the Russian economy could face stagflation.
AI Anchor|Y-GO
Edit Caption | Line
#NowNews
[Copyright holder (c) YTN Unauthorized reproduction, redistribution and use of AI data prohibited]
