Russian inflation and inflation targeting

Russian inflation has been a persistent issue in the country for many years. Inflation targeting is a monetary policy strategy used by central banks to manage inflation by setting specific targets for the rate of inflation. The Central Bank of Russia adopted inflation targeting in 2014 as a way to control the country’s high inflation rates.

Under inflation targeting, the central bank sets an inflation target and adjusts interest rates accordingly to achieve that target. The goal is to keep inflation within a specific range, typically around 2-3%. By using this strategy, the central bank can help stabilize the economy and promote sustainable economic growth.

However, implementing inflation targeting in Russia has been challenging due to various factors such as external shocks, geopolitical tensions, and structural issues within the economy. Despite these challenges, the Central Bank of Russia has made progress in reducing inflation and maintaining price stability through its inflation targeting framework.