Russian inflation poses major threat to development

Russian inflation, currently at its highest level in years, is a significant threat to the country’s economic development. Rapid price increases erode purchasing power, reduce investment, and hinder long-term growth prospects.

Inflation also puts pressure on the central bank to raise interest rates, further constraining economic activity. Addressing this challenge will require a combination of monetary policy, fiscal measures, and structural reforms to stabilize prices and support sustainable growth.