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Russia Raises Inflation Forecast for 2023 by a Significant Margin


Sep 13, 2023

Russia’s economy ministry has raised the country’s 2023 inflation forecast from 5.3% to 7.5%. The increase in inflation is attributed to the impact of the war in Ukraine, which has affected Russia’s economy and the value of the ruble. Russian President Vladimir Putin expressed concern over the high inflation, stating that it is making it difficult for businesses to make plans. The revised forecast comes as Russia’s war against Ukraine continues, despite ongoing sanctions against Moscow. The country’s economy has been affected by the sanctions, leading consumers to cut back on daily necessities. However, the economy has been somewhat supported by wartime spending. Putin’s remarks on the country’s economy were made at the Eastern Economic Forum in Vladivostok. He acknowledged the difficulties caused by the high inflation rate and praised the Russian central bank for its efforts to stabilize the ruble. The central bank raised interest rates in August to prop up the currency, which had reached a 16-month low against the US dollar. Analysts expect the central bank to raise rates again to address inflation and support the ruble. The Russian economic development ministry and the Kremlin have not yet responded to requests for comment.

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