Impact of Russian inflation on economy

Russian inflation has a significant impact on the economy, affecting both businesses and consumers. When inflation rates are high, the cost of goods and services rises, leading to a decrease in purchasing power for individuals. This can result in decreased consumer spending, which in turn can slow down economic growth.

High inflation rates also make it challenging for businesses to plan for the future, as they may struggle to accurately predict costs and set prices. This can lead to decreased investment and business expansion, further hindering economic growth. Additionally, inflation can erode the value of savings and investments, making it difficult for individuals to build wealth over time.