Economic inflation poses a significant challenge for Russia, according to Vladimir Putin.
In a recent meeting, Vladimir Putin discussed the current issues plaguing Russia's economy, with high inflation being one of the main concerns. Putin emphasized the importance of maintaining a balanced growth pace while monitoring macroeconomic indicators (TASS quote). He also highlighted the significance of avoiding a shift from economic overheating to cooling prematurely, as efforts to combat inflation should start yielding results before this occurs.
Putin pointed out that there are already signs of positive change, such as a decrease in the producer price index, a reduction in the corporate credit portfolio by 40 billion rubles in the first four months of 2025, and virtually halted inflation rates. According to Rosstat data as of May 5, annual inflation in Russia slowed from 10.34% to 10.21%. However, Putin stresses that the indicator still exceeds 10% and encourages a sustained decrease in price dynamics.
The Bank of Russia kept the key rate at 21% on April 25, 2025, and plans to prolong the period of tight monetary policy to achieve a return of inflation to its target by 2026. The Bank's future decision on the rate will depend on the pace and stability of inflation and inflation expectations. According to their forecast, annual inflation will slow to 7-8% in 2025 and return to 4% in 2026, staying at that level thereafter. The regulator also expects an average key rate of 19.5-21.5% in 2025.
In essence, both Putin and the Bank of Russia are working diligently to tackle inflation, employing a mix of monetary policy adjustments and economic management strategies. However, ongoing challenges, like high inflation and structural economic issues, continue to pose significant hurdles for the Russian economy.
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Keywords: #Vladimir Putin, #Inflation, #Economy
- Vladimir Putin, while discussing business and finance, stressed the necessity of adhering to a balanced growth pace, reducing the corporate credit portfolio, and lowering inflation rates, which are all intertwined with politics and general news regarding Russia's economy.
- Simultaneously, the Bank of Russia is engaging in financial policies to combat inflation, such as keeping the key rate high and extending the period of tight monetary policy, all while acknowledging the ongoing challenges posed by high inflation and structural economic issues within Russia, broadly reflecting political, business, and general news developments.
