Russian inflation and wealth inequality

Recent data shows that Russian inflation is on the rise, reaching a 5.8% annual rate in July 2021. This surge in prices is mainly driven by the depreciation of the ruble and higher food and fuel costs. As a result, many households are facing increased financial pressure, especially those with lower incomes.

At the same time, wealth inequality in Russia remains a significant issue. The richest 10% of the population hold over 75% of the country’s wealth, while the poorest 10% own less than 1%. This disparity is further exacerbated by the inflationary pressures, as the cost of living continues to rise disproportionately for those with limited financial resources.

Addressing these challenges requires a comprehensive approach that includes targeted social policies, such as increasing support for low-income families, improving access to affordable housing, and implementing progressive taxation measures. By addressing both inflation and wealth inequality, Russia can work towards creating a more equitable and sustainable economy for all its citizens.