Russia’s inflation 9.52% up in 2024

Russian consumer prices surged by 9.52 per cent in 2024, up from 7.42 per cent in 2023, according to final statistical data released on Wednesday. This marks the fourth-highest inflation rate in the past 15 years, following the sharp rise of over 10 per cent in 2022, when Russia invaded Ukraine, and during the 2014-15 economic crisis after Crimea’s annexation.

The country’s inflation continues to pose challenges in an economy heavily fueled by military spending. In response, Russia’s central bank has kept its benchmark interest rate at 21 per cent, the highest in two decades, in an attempt to curb inflation.

In the first two weeks of 2025, consumer prices grew by 0.67 per cent, driven largely by increases in liquor, food, and public transportation costs. Vodka prices climbed by 3.7 per cent, cucumbers saw an 8.6 per cent jump, and subway ticket prices rose by 8.2 per cent, reflecting an annual hike. Prices for bus and tram tickets also increased.

Despite overall wage growth, inflation is significantly eroding the purchasing power of vulnerable groups, with real pensions declining by 0.7 per cent from January to November 2024.

Attribution: Reuters