Russia is going through a tough phase amid the war with Ukraine from several months now. As per latest reports, the country’s economy is weakening due to rise in inflation. The central bank was also ordered to increase interest rates last week so that the situation can be kept under control and help the government. Even the government has been informed to take measures in maintaining the situation. Meanwhile, this is going to be a big challenge for Russian President Vladimir Putin due to a major reason.
It is a challenge because he is preparing to launch an expected bid so that he can be the president for 6 more years. Which means if he wins the elections, he will be re-elected to be the President again. The elections will be held in March next year and the present situation is such that the prices of basic requirements are rising. This is a big concern for the president. Moreover, several countries have imposed sanctions on Russia over the war with Ukraine. This includes countries like United States etc.
Putin has said in a statement that the current situation is exceptional in nature. He said “The scale and complexity of the tasks we are solving, and continue to solve, are of a really exceptional nature,”. How about you also address to the officials that the situation is under control right now but it is necessary to have vigilant monitoring and take timely decisions. In a big dip to the economy, russia had to face a two digit inflation last year. However, the situations improved around the arrival of spring.
Right now the inflation is above 4% which is more than the target of the central bank. It has been no test that it is studyly rising as well instead of reducing. The main reason for this is because Russia’s budget is widening and there is a shortage in stark labour. Putin has stated that “Work is needed, among other things, on limiting unproductive, speculative demand, controlling the outflow of capital, monitoring the behaviour of the main participants of the financial market.”.