Russian inflation and inflation targeting

Since the collapse of the Soviet Union, Russia has struggled with high inflation rates. Inflation targeting, a monetary policy strategy aimed at keeping inflation within a target range, has been adopted by the Central Bank of Russia to address this issue.

Under inflation targeting, the central bank sets a specific inflation target and adjusts interest rates to achieve this goal. By focusing on controlling inflation, the central bank aims to promote price stability and support sustainable economic growth. This approach helps to anchor inflation expectations and build credibility with financial markets and the public.

However, implementing inflation targeting in Russia has been challenging due to various factors such as external shocks, fiscal policy uncertainties, and structural weaknesses in the economy. Despite these challenges, the Central Bank of Russia remains committed to its inflation targeting framework as a key tool for achieving macroeconomic stability.