Russia inflation rises 8.9% amid economic strain

December 18, 2024 (MLN): The Russian economy is facing rise in inflation by 8.9% and soaring borrowing costs, with interest rates at a two-decade high of 21%, as reported by APP.

The economy is also encountering heightened bankruptcy risks and a slowdown in growth as the repercussions of the Ukraine war and Western sanctions continue to take their toll.

Since ordering an invasion in February 2022, Russian President Vladimir Putin has repeatedly touted the "failure" of sanctions and hailed strong growth in the face of unprecedented uncertainty.

But going into 2025, that three-year run of mostly good economic news looks in serious doubt.

Russian media, usually reluctant to report on any sign of social discontent, are turning increasing attention to hard-pressed families.

The price of butter, up a third since the start of the year, has become emblematic, with a slew of reports on rising thefts from supermarkets.

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