**Russia’s President Admits Inflation Problem**
Russian President Vladimir Putin said on February 7 that inflation is a major challenge for the country’s economy. He asked the government to come up with plans to lower inflation by 2025.
**Prices Keep Rising**
Putin spoke at a meeting with Prime Minister Mikhail Mishustin. He mentioned that prices in Russia have been rising quickly. In 2024, prices went up by 9.5%. This month, they are up by 9.9% compared to last year.
**Growth and Inflation**
Putin emphasized the need for “balanced growth” and wants the government to come up with a plan to lower inflation. He also wants them to find ways to make structural changes in the economy. Mishustin agreed that inflation is the biggest concern and said the Russian economy grew by 4.1% in 2024.
**Central Bank Concerns**
The Central Bank of Russia recently said it sees no signs of a slowdown in price growth. It pointed out that Western sanctions, a weak ruble, and a poor harvest are all making things worse. The bank also mentioned that increased defense spending is driving demand for goods and services, which the economy can’t keep up with.
**Forecast**
The Central Bank forecasts inflation to ease to between 5.2% and 8.6% by the end of 2025. It will meet again on February 14 to discuss further measures to stabilize the economy.
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